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Central Bank of Kenya okays acquisition of Mayfair Bank

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Commercial International Bank has completed the acquisition of a 51 percent majority stake in Mayfair Bank Limited effective 1 May 2020.

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According to the Central Bank of Kenya, CIB entry in the country through the transaction is expected to diversify and strengthen the resilience of the banking sector with services targeting SMEs, institutions and corporate sectors.

The announcement by the Central Bank follows CBK’s approval on April 7, 2020 under Section 13 (4) of the Banking Act and approval by the Cabinet Secretary for the National Treasury and Planning on April 8, 2020 pursuant to Section 9 of the Banking Act.

CIB’s business model focuses on individuals, Small and Medium Enterprises institutions and corporates.

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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.

CIB was licensed by the Central Bank of Egypt on August 13, 1975, and is currently the leading private sector bank in Egypt with a total asset base of Ksh 2.45 trillion.

It is listed on the Egyptian Stock Exchange, London Stock Exchange and trades over the counter on the New York Stock Exchange.

CIB has representative offices in the United Arab Emirates (UAE) and Ethiopia.

On the other hand, MBL that was licensed in June 2017 and commenced operations in August 2017; has five (5) branches in Nairobi, Eldoret and Mombasa.

It targets high net worth individuals and the corporate market segment.

It is categorized as a small bank with a market share of 0.17 percent as at February 2020.

Under the deal CIB will provide MBL with the requisite skills, resources and infrastructure to scale up its business.

The acquisition is expected to diversify and strengthen the resilience of the Kenyan banking sector.



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