NAIROBI, Kenya, Apr 26 – Central Bank of Kenya has given Egypt’s largest bank Commercial International Bank approval to acquire a controlling stake in Mayfair Bank.
In a statement, Mayfair Bank’s Board Chair Anjay Patel says the Egyptian lender has injected approximately Sh3.7 billion into the local bank, paving way for the commencement of operations as Mayfair CIB Bank Limited.
In a separate statement, CBK says the buyout will strengthen Mayfair Bank as the injected funds will be added to the Bank’s Capital base and accelerate the shareholders’ growth strategy.
CBK also expects the deal to strengthen trade and investment ties between the two countries.
Kenya and Egypt have been exerting strenuous efforts to double the volume of trade exchange between them.
In 2018, the volume of trade between Kenya and Egypt was valued at Sh67 billion (USD 640 million.
CIB is the first Egyptian Bank to establish a presence in Kenya. According to CBK, the acquisition of Mayfair Bank will anchor CIB’s expansion into the East African region.
Mayfair Bank was licensed in June 2017 and commenced operations in August 2017. The bank has five branches and targets high net worth individuals and corporate market segments.
According to CBK data, the bank is categorized as a small bank, with a market share of 0.17 percent as at February 2020.
Commercial International Bank Egypt was established in 1975 as a joint venture between the National Bank of Egypt and Chase Manhattan Bank.
The bank is currently the leading private sector bank with a total asset base of approximately Sh2.45 trillion.
It is listed on Cairo Stock Exchange, London Stock Exchange and traded on the New York Stock Exchange.