Egyptian private bank Commercial International Bank (CIB) has finalized the acquisition of 51 stakes in the capital of Kenyan Mayfair Bank, following the approval from Kenya’s banking sector regulator, which will take effect on May 1.

With this investment, the EGX- and LSE-listed company becomes the first from Egypt to enter the Kenyan market. Three years after Mayfair started operations in the East African country, the company made moves to open a majority share in its capital to foreign investors.

CIB posted losses in the fiscal years 2018 and 2019 and now intends to develop Mayfair's activities and provide the necessary resources and skills to lead this institution on the road to profitability.

According to the Central Bank of Kenya, the operation will strengthen trade between Kenya and Egypt and diversify the country's banking sector. Kenya is only the first step in CIB's expansion in the region. The Bank, which has an asset base of $24.18 billion, has eyes on other attractive markets in the region. Apart from Kenya, it also has a presence in Ethiopia.

Chamberline Moko