Mauritius-based SBM Africa Holdings Limited has completed the acquisition of Fidelity Commercial Bank, a Kenyan commercial bank ranked 31 out of 41 licensed banks in the East African nation following the apex bank’s regulatory approval of purchase.
Kenya’s Central Bank Governor Patrick Njoroge announced the completion of the SBM Africa acquisition of Fidelity Bank on Thursday, saying the new market entrant provided impetus to the Kenyan banking sector and a boost to trade amongst African countries.
“CBK welcomes this milestone in the strengthening of the banking sector that will lead to the emergence of a world-class financial sector,” Njoroge said in a statement announcing the completion of the deal.
SBM Africa Holdings Limited kicked off its intended acquisition of Fidelity Bank, a mid-sized lender with 14 branch outlet with a market share of 0.39 percent of the Kenyan market in November 2016.
“The entry of SBM Group into Kenya provides a welcome impetus to our banking sector. SBM will bring its experience and expertise from Mauritius and other markets, to enhance the competitiveness and resilience of Kenya’s banking sector,” Njoroge said.
SBM Group is the second largest listed company in Mauritius. Its banking outlet, SBM Bank (Mauritius) Limited operates in India, Madagascar and has a representative office in Myanmar.
The CBK has also approved the change of name from Fidelity Commercial Bank Limited to SBM Bank (Kenya) Limited, under Section 3 of the Banking Act, the Central Bank announced.
SBM Africa is a fully-owned subsidiary of SBM Holdings Limited of Mauritius and has been approved by CBK as a Non-Operating Holding Company under Section 13 of the Banking Act.
“Going forward, SBM is well poised to play a significant role in financing intra-Africa trade and investments, using Kenya as a launching pad into other African markets,” the CBK said upon the completion of the acquisition of a majority stake in on May 10. Enditem