I&M Group PLC has successfully expanded its ownership in I&M Bank (T) Limited (IMTz), the Tanzanian subsidiary of the East African financial services group, to 95.5 per cent following the acquisition of additional shares previously held by development finance institutions and regional investors.
The acquisition, which was disclosed in a notice to shareholders on 13 January 2026, marks a notable milestone in the Nairobi-based lender’s ongoing regional expansion and consolidation strategy across East Africa.
It reflects I&M Group’s confidence in the growth prospects of Tanzania’s banking sector, particularly amid heightened economic activity and a push for broader financial inclusion across the region.
Under the terms of the transaction, I&M Group PLC bought out shareholdings previously held by PROPARCO, the French development finance institution, and Microfinance East Africa Ltd (MEAL), after securing all necessary corporate and regulatory approvals.
The deal raises the group’s total shareholding in IMTz, including stakes held by I&M Bank Limited, from 84.9 per cent to 95.5 per cent.
Analysts say the move underscores I&M Group’s long-term strategic commitment to deepening its footprint in East Africa, a market characterized by robust demographic growth, increasing financial services penetration, and rising demand for retail and corporate banking products.
The Tanzanian banking sector, in particular, has been emerging as a dynamic frontier for regional lenders due to sustained economic growth and regulatory reforms aimed at enhancing financial access.
I&M Group’s broader network spans Kenya, Uganda, Rwanda, Tanzania, and Mauritius (through Bank One Limited), positioning the group among the region’s most diversified financial services providers.
Prior to this transaction, the group had progressively increased its stake in IMTz since first entering the Tanzanian market, reflecting a long-term strategy to bolster regional banking operations.
“The successful acquisition further reaffirms the Group’s confidence in the country’s dynamic financial sector and marks a significant milestone in IMTz’s growth journey,” I&M Group said in its official notice to shareholders.
It also extended thanks to PROPARCO and MEAL “for their longstanding partnership, support and contributions that have played a crucial role in IMTz’s success and achievements to date.”
The deal has been executed with the approval of the Capital Markets Authority (CMA) of Kenya, under the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
CMA’s oversight ensures that disclosures related to share acquisitions by publicly listed companies uphold stringent standards of transparency and investor protection.
I&M Group PLC is regulated by the Central Bank of Kenya and the Capital Markets Authority of Kenya, further anchoring its operations within established regional regulatory frameworks.
The stake increase in Tanzania comes at a time when I&M Group has been reporting strong financial performance across its markets.
For instance, the group posted a 26 per cent year-on-year increase in profit before tax for the third quarter of 2025, a reflection of sustained operational momentum and diversified revenue streams across its East African footprint.
Industry observers suggest that consolidating ownership in key regional subsidiaries may enable I&M Group to better align strategic priorities, capture operational efficiencies, and unlock new growth opportunities in under-banked segments.
These include small and medium-sized enterprises (SMEs), retail banking sectors, and digital financial services that have been gaining traction due to broad shifts towards mobile and online banking.
For Tanzania, deeper investment by a leading regional banking group signals continued confidence from investors in the country’s regulatory environment and economic potential.
With a growing population and expanding middle class, Tanzania’s financial landscape presents fertile ground for increased banking activity, lending, and financial innovation.
Tanzania’s regulators have been actively modernizing the financial sector, including advancing digital finance platforms and strengthening supervisory frameworks, a backdrop that has attracted regional and international financial institutions seeking scale and sustainable returns.
With this enhanced ownership stake, I&M Group is expected to further integrate IMTz into its broader regional strategy, potentially unlocking synergies in product development, risk management, and technology deployment.
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