In a significant move within the East African banking sector, the Pan-African banking giant, United Bank for Africa (UBA), has notably increased its shareholdings in its Kenyan and Ugandan subsidiaries. This strategic decision highlights UBA's intensified efforts to strengthen its presence in a region dominated by Kenyan retail banks.

Owned by Nigerian billionaire Tony Elumelu, UBA acquired an additional 13% in UBA Kenya Ltd and 11% in UBA Uganda Ltd during the year 2022.

These acquisitions have elevated UBA Plc's ownership to 94% and 80% in the respective subsidiaries, marking a significant increase from the previous stakes of 81% in Kenya and 69% in Uganda. The detailed transactions were disclosed in the lender's latest annual report for 2023.

The financial commitment towards these stake increases amounted to NGN 18.49 billion ($16.04 million). Specifically, UBA spent NGN 6.96 billion ($6.03 million) for the additional shares in Uganda, and NGN 11.52 billion ($9.99 million) for the Kenyan shares.

Furthermore, in 2023, UBA injected an additional NGN 17.32 billion ($15.02 million) into these subsidiaries. This capital infusion included investments of NGN 5.14 billion ($4.45 million) in Kenya and NGN 12.17 billion ($10.55 million) in Uganda, aimed at bolstering their financial base and operational capabilities.

This investment is part of UBA's broader strategy to capitalize on the East African Community (EAC) market, home to over 300 million people. UBA also operates subsidiaries in Tanzania and the Democratic Republic of Congo (DRC), indicating its robust footprint and commitment to the region.

UBA's aggressive expansion in East Africa underscores its objective to enhance its market share and influence in the region's competitive banking sector. These strategic investments not only reflect UBA's long-term commitment to its East African operations but also demonstrate its confidence in the economic potential of the EAC market.