Rwanda’s BK Group has sold its entire stake in BK General Insurance to the Rwanda Social Security Board for RWF31.7 billion ($21 million), sharpening the financial group’s focus on banking and investment banking.

BK Group streamlines its businesses

The transaction values the insurer’s shares at RWF10,567 ($7.16) each, compared with an initial price of RWF1,000 ($0.67), according to BK Group. The deal received the required regulatory approvals, including a non-objection from the National Bank of Rwanda.

The sale is part of a broader restructuring designed to concentrate BK Group’s operations around two core businesses: commercial banking through Bank of Kigali Plc and investment banking through BK Capital Ltd. BK Group has also completed the integration of technology subsidiary BKTH into Bank of Kigali.

Under the integration, BKTH’s assets, technology platforms and relevant contracts have been transferred to Bank of Kigali, ending its operation as a separate subsidiary. Technology functions previously managed by BKTH will now operate through Bank of Kigali’s Digital division. The group said the integration has not disrupted customer services.

Proceeds from the BKTH transaction were used to settle the company’s liabilities, with any remaining surplus to be transferred to BK Group once the company is formally closed. BK Group said the transactions will not affect its consolidated net asset value.

BK Group puts banking at the center

The transactions were disclosed under the continuing obligations of the Rwanda Stock Exchange and Nairobi Securities Exchange.

BK Group Plc is Rwanda’s largest financial services conglomerate, headquartered in Kigali. As the group’s holding company, it oversees subsidiaries and supports strategy, execution and growth under its One BK Group model.

Its flagship banking subsidiary, Bank of Kigali, is Rwanda’s largest commercial bank. Established in 1966, the bank provides personal and business accounts, loans, savings, digital banking and investment services through a broad network of branches, ATMs and banking agents.

The bank also serves SMEs, women entrepreneurs and diaspora customers and maintains an investor relations platform providing financial reports, annual statements and strategic updates.

RSSB expands its insurance footprint

The buyer, Rwanda Social Security Board, is the government institution responsible for managing and promoting social security and public welfare in Rwanda.

Established in 2010 through the merger of the Social Security Fund of Rwanda and Rwanda Health Insurance Fund, RSSB oversees major social protection and insurance programs.

BK General Insurance, originally incorporated by Bank of Kigali in 2015, is a Kigali-based multiline general insurer. The sale transfers the business fully to RSSB as BK Group narrows its portfolio around financial services it considers core to its strategy.