Commercial International Bank Egypt (CIB) will proceed with the complete takeover of Kenya’s Mayfair CIB after obtaining approvals from authorities.
The Central Bank of Egypt (CBE) and the Central Bank of Kenya (CBK) have just granted their consent for CIB to acquire the remaining 49% of Mayfair CIB for $40 million, CIB said in a statement.
The latest deal will make Mayfair CIB a fully owned subsidiary of the Egyptian lender. Last April 2022, CIB acquired 51% stake in Mayfair Bank, marking its entry into the Kenyan market.
“We are pleased and grateful for this vote of confidence from [authorities} as we are firm believers in the prospect of prosperity of the Kenyan economy and look forward to our contribution to the same,” said Hussein Abaza, CEO and Managing Director of CIB.
Mayfair CIB saw its operating income rise by 64% to KSH 891.45 million ($8.2 million) in 2021. Profits after tax stood at KSH 96.1 million compared to a net loss of KSH 279.3 million.
Kenya, which has a population of more than 53 million, is home to 39 commercial banks.
According to Hossam Rageh, Executive Director at Mayfair CIB, there are still “great opportunities” in Kenya.
“Kenya offers great opportunities, and we are excited to be part of the country’s business life and future. We will grow this bank as we continue to provide a first-class service to all our clients.”
(Writing by Cleofe Maceda; editing by Seban Scaria)