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Uhuru Kenyatta
East AfricaLeadership

Uhuru Kenyatta, EAC Advisors Seek Resolutions For DRC Security Crisis

by Kwabe Ben
written by Kwabe Ben

The Facilitator of the EAC-Led Nairobi Process on the Restoration of Peace and Stability in eastern DRC, Former President Uhuru Kenyatta, this Tuesday called an urgent meeting with the East African Community (EAC) Technical Advisors.

The main agenda of the meeting was stated to be the review of the situation in the eastern Democratic Republic of Congo (DRC). This comes following the concerns as a serious escalation of fighting, targeted killings are consequently reported in Ituri and North Kivu regions.

The deteriorating certainty of peace in the Central African country turns out to be against the previous Nairobi Principles and the Luanda Agreement that called for calm, unity, and a cessation of hostilities.

“The Facilitator expressed his deep concern about the serious violation of the Nairobi Principles and the Luanda Agreement. We need an urgent return to dialogue and consultation in order to promote trust and confidence among the parties to the conflict and alleviate the suffering of the people in eastern DRC,” read the statement.

The tensions arising between Rwanda and DRC are mainly causative of the M23 Rebel Group, which is blamed on Rwanda for the funding and push according to Western Powers. An allegation that Rwanda has incessantly taken a stand against.

Reports of encounters that depict the rivalry between the two nations have steadily been on the rise, this involves; DRC police clashing with Rwandan Soldiers on a small island in lake Kivu, another incident is where Police stationed on Ibindja Island in eastern DRC challenged three boats carrying armed Rwandan troops as they approached their base on Saturday leaving one officer with a gunshot wound.

Additionally last week’s attack by Rwandan forces fired at a DRC fighter jet with claims that it had violated its airspace. An accusation that Congo denied instead pointing the attack as an act of war.

Despite all the ensuing events, former President Uhuru Kenyatta assured of the commitment by the EAC to restoration of peace in eastern DRC and the whole of the East African Community.

“The Facilitator remains committed to the course of building peace in eastern DRC and continues to call on regional leaders and the international community to lend their political goodwill and support to the full realization of the EAC-Led Nairobi Peace Process for the Restoration of Peace and Stability in eastern DRC,” Tuesday’s statement added.

Further, the Facilitator called on regional leaders and the International Community at large to take part in assisting the peace resolvement process to be a success.

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KCB shareholders approve the acquisition of Trust Merchant Bank SA in DRC
BusinessEast AfricaNews

KCB Shareholders Approve Acquisition Of TMB Bank In DRC

by Ndungu Brian
written by Ndungu Brian

KCB Group Plc shareholders have approved the proposed acquisition of the DRC-based lender Trust Merchant Bank SA (TMB) during an Extra Ordinary General Meeting in Nairobi.

In August 2022, KCB Group Plc entered into a definitive agreement with shareholders of TMB to acquire the Bank.

Under the terms of the transaction, KCB will acquire 85% of the shares in TMB while the existing shareholders will continue to hold the balance for not less than 2 years after which KCB will have the right to acquire their shares.

TMB, a public company limited by shares, is one of DRC’s largest banks, with US$1.5 billion in total assets.

TMB has a strong offering in Retail, SME, Corporate, and Digital banking channels. It has 109 branches and numerous agency banking outlets spread across DRC. With an insurance subsidiary called Affrissur SA, the transaction will provide a good platform for KCB to diversify its offerings in the region.

The acquisition is part of KCB’s ongoing strategy to expand its regional participation, accelerate growth and maintain sustainable long-term regional success while investing in and maximizing the returns from its existing businesses.

This will give KCB the opportunity to conduct business in the DRC market, the newest member of the East African Community.

“The shareholders’ nod is a major milestone for us to accelerate the acquisition process which will allow us to scale up our balance sheet, revenue streams and contribute positively to KCB’s growth and diversification objectives.” Said KCB Group Chairman Wambari Kairu.

“In turn, KCB will be able to rapidly establish its presence within DRC by leveraging TMB’s 18-year operational history and vast branch network. In addition, the transaction will position KCB strongly with the resultant effect being enhancing its ability to compete with other financial service providers strongly and effectively in DRC and regionally. This will have long-term benefits for shareholders, customers and employees enabling KCB to realize its long-term vision and mission.” He added.

The transaction is expected to close before the end of the year, subject to regulatory approvals and other customary closing conditions. This acquisition is aligned with the Group’s strategic focus of scaling its regional presence.

Once completed, TMB will complement KCB Group’s footprint with an asset base of KShs. 1.5 trillion (US$ 12.6 billion) and is expected to strengthen the Group’s retail and corporate banking franchises.

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East AfricaNews

Somalia Seeking To Join The East African Community

by Ndungu Brian
written by Ndungu Brian

Somalia has renewed its interest in joining the East African Community (EAC), cementing the desire of President Hassan Sheikh Mohamud to stabilize ties with the neighboring countries.

President Mohamud was expected in Arusha on Thursday as a special guest to attend the 21st Ordinary Summit of the EAC Heads of State. And Villa Somalia, his official residence, said his trip would also be about renewing his push to join the regional bloc.

“President Hassan Sheikh Mohamud is leaving tomorrow (Thursday) for Arusha in Tanzania to seek support for to join the East African Community (EAC), which if possible will benefit the Somali people,” his office said.

Mr. Mohamud had attempted to join the EAC in his first term between 2012 and 2017, but the bloc initially refused the application, citing sporadic conflict and weak institutions in Somalia. But Mogadishu got back its hope after an equally troubled South Sudan was admitted in 2016.

In 2019, then President Mohamed Farmaajo reapplied alongside the Democratic Republic of Congo. Last February, the bloc decided to begin admitting Kinshasa but delayed a decision on Mogadishu, pending verification by a team of experts to determine Somalia’s readiness.

“The summit noted that the verification exercise for the admission of the Federal Republic of Somalia into the East Africa Community had not been undertaken and directed the Council to follow up on the exercise,” the EAC said after a summit last year.

Read: DR Congo becomes a full-fledged member of EAC

If the bloc begins to verify Somalia’s status, Mogadishu may not be admitted at least until a year later, going by the previous admission procedures.

The EAC partner states are Kenya, Tanzania, Uganda, Rwanda, Burundi, South Sudan and DR Congo. The countries become members of the bloc when they meet certain conditions set out in the 1999 Treaty for the Establishment of the East African Community. Those conditions include respect for universal principles of good governance, democracy, the rule of law, respect for human rights and other civil liberties.

Read also: IMF approves Ksh 28 billion loan to Kenya

Some of the latest entrants, however, have been weak on these fronts, and officials have argued that they were admitted to influence them towards better governance instead of leaving them dead.

Somalia is already a member of the Common Market for Eastern and Southern Africa (COMESA), a trading bloc of 21 countries in north, east, central and southern Africa, which includes most of the EAC members today.

With its long coastline, Somalia could provide added access to the sea, and Somalis could benefit from free movement within the bloc as opposed to the situation where they need a visa today. However, Somalia’s security problems, including a resurgent Al-Shabaab, means the bloc could also be taking in a common problem.

This development comes barely days after The Democratic Republic of Congo was officially admitted into the East African Community depositing the instruments of ratification allowing it to have full rights and privileges like any EAC member, to participate in EAC’s programs and activities and affirm to meet the obligations of the EAC.

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AfricaBusinessEast Africa

DRC Officially Joins EAC After Depositing Instruments of Ratification

by Ndungu Brian
written by Ndungu Brian

The Central Bank of Kenya (CBK) has welcomed the admission of the Democratic Republic of Congo (DRC) into the East African Community (EAC).

At a function held at the EAC headquarters in Arusha, Tanzania; the occasion was marked by the depositing of the instrument of ratification with the Secretary-General of the EAC.

DRC now has full rights and privileges like any EAC member to participate in EAC’s programs, and activities and affirms to meet the obligations of the EAC.

In a statement by the CBK, the admission of the DRC as the seventh member joining Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda has expanded the market size of the EAC, adding that it offers a path between the seas for trade and cultural integration.

As well as new investment and employment opportunities for a dynamic population of about 300 million.

EAC says uniting the seven members provides a clear path to shared prosperity and a common destiny.

“The DRC’s admission to the EAC also means it joins the institutions of the Community, including the EAC’s Monetary Affairs Committee (MAC),” says CBK.

The Chair of the MAC, Dr. Patrick Njoroge, remarked: “On behalf of my fellow EAC Central Bank Governors I warmly welcome the people of the DRC into the East African Community. In particular, I am pleased to welcome Mme. Malangu Kabedi-Mbuyi, Governor of the Banque Centrale du Congo, to the MAC.”

Adding that: “While my fellow EAC Central Bank Governors and I have had the occasion to work closely with Mme. Kabedi-Mbuyi on numerous initiatives, she will now be an integral member of the MAC. We look forward to working together for the prosperity of our people”.

With a population of about 92 million people, DRC holds almost half of the population of the EAC member states and is thus a huge market. Its entry portends growth in various sectors, and also increases the population to above 300 million.

In April 2022, Felix Tshisekedi, President of DRC together with President Uhuru Kenyatta, Chair of the EAC Summit of Heads of State signed the Treaty of Accession by the Democratic Republic of Congo to the EAC at Statehouse Nairobi.

This happened following the admission of DRC as the 7th member of the EAC during the 19th Summit of EAC Heads of State held on Tuesday 29th March 2022.

DRC officially becomes the 7th member state of the East African Community.

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