Mayfair Bank Limited (MBL), associated with former Nairobi gubernatorial aspirant Peter Kenneth is on the verge of acquisition following a nod by the Central Bank of Kenya (CBK) on Friday, April 24, 2020.
The decision was informed through a press release issued by CBK.
"The Central Bank of Kenya (CBK) announces the acquisition of 51 per cent of the shareholding of Mayfair Bank Limited (MBL) by Commercial International Bank (Egypt) S.A.E (CIB) effective May 1, 2020," the statement read in part.
The acquisition proceeds an approval by CBK on April 7, 2020, and by Cabinet Secretary for the National Treasury and Planning Ukur Yattani on April 8, 2020.
MBL was licenced in June 2017, ending a 15-month moratorium issued by CBK Governor Patrick Njoroge. and commenced operations in August the same year. It has 5 branches spread across Nairobi, Eldoret and Mombasa.
MBL is categorised as a small bank with 0.17 per cent market share as of February 2020, however, targeting high net worth persons and corporate institutions.
"CIB will provide MBL with requisite skills, resources and infrastructure to scale up its business," CBK informed in the statement.
The Egyptian bank has been in operation since August 13, 1975, and is the single largest private sector bank in the Northern Africa nation with assets valued at Ksh2.45 trillion (24.18 billion dollars).
The bank is listed in the Egyptian Stock Exchange, London Stock Exchange, and is an over the counter trader at the New York Stock Exchange. The lender has representative offices in the United Arab Emirates (UAE) and Ethiopia.
The Egyptian lender boasts a business model focusing on Small and Medium Enterprises (SMEs), institutions and corporates, and was the first bank from the country to set up shop 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 statement read in part.
CBK stated that the move was expected to diversify and strengthen the resilience of the country's banking sector.
Kenneth is among the shareholders in MBL as indicated on the lender's website. He founded Mayfair Group, which owns Mayfair Insurance- a shareholder in MBL.
