Commercial International Bank (Egypt) S.A.E (CIB) has acquired 51% of the shareholding of Mayfair Bank Limited (MBL).
The acquisition, according to the Central Bank of Kenya (CBK), takes effect beginning May 1.
It follows the approval by the CBK on April 7 under Sec 13(4) of the Banking Act and that of the Cabinet Secretary for the National Treasury and Planning on April 8 pursuant to Sec 9 of the Banking Act.
MBL was licensed in June 2017 and commenced operations in August 2017. The bank has five (5) branches in Nairobi, Eldoret and Mombasa. It targets high net worth individuals and the corporate market segment. It is categorised as a small bank with a market share of 0.17% as at February 2020. Commercial International Bank (CIB) will provide MBL with the requisite skills, resources and infrastructure to scale up its business.
CIB was licensed by the Central Bank of Egypt on August 13, 1975. It is currently the leading private sector bank in Egypt with a total asset base of approximately $24.18 billion (Sh2.45tn). It is listed on the Egyptian Stock Exchange, London Stock Exchange and trades over the counter on the New York Stock Exchange. It also has representative offices in the United Arab Emirates (UAE) and Ethiopia.
CIB’s business model focuses on individuals, Small and Medium Enterprises, institutions and corporates. It is the first Egyptian bank to establish a presence in Kenya. The acquisition of a majority stake in MBL will anchor CIB’s expansion into the East African region. Its entry will also strengthen the trade and investment ties between Kenya and Egypt.
The acquisition is expected to diversify and strengthen the resilience of the Kenyan banking sector.