NAIROBI, Kenya, Jun 16 – M Holdings Limited, owned by various shareholders of Bank M Tanzania, has finally received approval from Central Bank of Kenya (CBK), to acquire 51 stake percent at Kenya’s Oriental Commercial Bank Limited.
The move which paves way for Bank M to open business in Kenya, will see Oriental Commercial Bank change its name to M Oriental Commercial Bank Limited.
According to the CBK, M Holdings has also been allowed to form a non-operating holding company, which only invest in other companies.
“The Central Bank of Kenya announces approval of an application by M Holdings Limited to form a Non-Operating Holding Company under Section 13 (1) (e) of the Banking Act, and the acquisition of a 51 percent stake in the shareholding of Oriental Commercial Bank Limited,” the CBK announced on Thursday.
The transaction and consequent changes are expected to be completed by September this year.
The approvals come days after Bank M announced plans to set shop in Kenya a move that will it being the first bank to enter the Kenyan market.
Bank M is a commercial bank licensed and regulated by the Bank of Tanzania since February 2007 and is focused on corporate and investment banking.
“Bank M is the first bank from Tanzania to enter the Kenyan banking sector. Its entry into the Kenyan market strengthens the ongoing East African Community (EAC) integration,” the CBK noted.
Oriental Commercial Bank Limited which has nine branches on the other hand was licensed in 1991 and is ranked position 37 in terms of market share as at December 2015.