I&M Group spent Sh1 billion last year to acquire an additional 17 percent stake in its Tanzanian banking subsidiary through a capital injection and the buyout of other investors.
The twin transactions increased its ownership in I&M Bank Tanzania Limited to 95.51 percent in the year ended December 2025 from 78.51 percent a year earlier.
The acquisition followed the purchase of shares held by development finance institution Proparco and Microfinance East Africa Ltd (MEAL), alongside participation in rights issues.
“The increase from 78.51 percent in 2024 to 95.51 percent in 2025 is explained by two separate steps. First, I&M Group subscribed for the rights issue undertaken by I&M Bank Tanzania in 2025,” Gauri Gupta, I&M Group Director for Corporate Advisory & Sustainability, said in an emailed statement.
“This was followed by the group’s acquisition of shares previously held by the two minority shareholders, Proparco and Microfinance East Africa Ltd (MEAL) … taken together, these transactions resulted in an increase in the group’s holding of 17 percent.”
Ownership boost
I&M Group now directly owns 45.7 percent of I&M Bank Tanzania and the remaining 49.81 percent indirectly through its Kenyan subsidiary, I&M Bank Limited.
The Nairobi Securities Exchange-listed firm has steadily expanded its investment in Tanzania over the past 15 years. In 2010, it acquired a 55 percent controlling stake in CF Union Bank Limited, which was later rebranded as I&M Bank Tanzania Limited.
I&M Group said the latest increase in its ownership in the Tanzanian banking subsidiary underscores its confidence in Tanzania’s financial sector and reinforces its commitment to supporting financial inclusion and economic growth in the country.
As at December 2025, I&M Bank Tanzania operated eight branches and 11 ATMs, serving more than 38,000 customers.
The increased ownership comes amid stronger earnings growth at the Tanzanian subsidiary.
I&M Bank Tanzania posted a net profit of Sh1 billion in the year ended December 2025, up from Sh879 million the year before.
I&M Group operates in Kenya, Uganda, Tanzania, Rwanda and Mauritius. Its latest regional expansion came in April 2021 through the acquisition of privately owned Orient Bank Ltd in Uganda.
