Commercial International Bank (Egypt) [CIB Egypt] has acquired a stake of 51% in Mayfair Bank, a Kenyan commercial bank, through a share capital injection of about $35m.
The acquisition will come into effect next month. The transaction has already secured approvals from the Central Bank of Kenya (CBK) and the Kenyan Cabinet Secretary for the National Treasury and Planning.
Mayfair Bank, which was granted license in mid-2017, began operations in August 2017. The Kenyan commercial bank operates five branches located across Nairobi, Eldoret and Mombasa.
The bank caters to high net worth individuals and the corporate market segment. It offers corporate banking, business banking, and personal banking services.
Mayfair Bank is categorised as a small bank
According to the Central Bank of Kenya, Mayfair Bank is categorised as a small bank, having a market share of 0.17% as of February 2020. The Central Bank of Kenya said that the acquisition is anticipated to diversify and boost the resilience of the Kenyan banking sector.
The Kenyan commercial bank is expected to gain the requisite skills, resources, and infrastructure from Commercial International Bank (Egypt) to scale up its business. It will operate as Mayfair CIB Bank once the deal becomes effective.
Mayfair Bank said that the partnership with the Egyptian bank will enable it to benefit from the latter’s global experience and technical expertise.
The Kenyan bank stated: “Mayfair Bank’s local network and reach is expected to set the foundation for building a world class institution that caters to the needs and evolving expectations of SMEs and large corporates in Kenya and beyond and towards harnessing intra Africa trade.”
Commercial International Bank (Egypt) is said to be among the the top private sector banks in Egypt with a total asset base of about $24.18bn. It is listed on the Egyptian Stock Exchange, London Stock Exchange, and trades over the counter on the New York Stock Exchange.
Commercial International Bank (Egypt) is now the first Egyptian bank to set up a presence in Kenya. The acquisition of a majority stake in the Kenyan commercial bank is expected to steer the Egyptian bank’s expansion into the East African region.
