Mauritian SBM Holdings to acquire Kenya's Fidelity Bank

Fidelity Bank along Nairobi's Kaunda Street. FILE PHOTO | SAMMY KIMATU  

By James Anyanzwa

In Summary

• Entry of SBM into Kenya’s banking sector to be a springboard into the East African region.

Mauritian financial services provider SBM Holdings Ltd is set to acquire Kenya’s Fidelity Commercial Bank Ltd subject to regulatory approval from the two countries.

The Central Bank of Kenya (CBK), in a statement Tuesday, said the proposed acquisition would mark the entry of SBM into Kenya’s banking sector, using it as springboard into the East African region.

The transaction is expected to be completed by December 31, 2016.

Fidelity commenced operations as a non-bank financial institution in June 1992, and converted into a commercial bank in April 1996.

The Tier III lender had a market share of 0.39 per cent as at the end of 2015 and operates 14 branches in the country.

SBM is the second largest firm listed on the Stock Exchange of Mauritius with an asset base estimated at $4.2 billion as at September 30, this year.

Its banking arm, SBM Bank (Mauritius) Ltd. is one of the leading banks in Mauritius with an international footprint in India, Madagascar, and a representative office in Myanmar.

SBM Group is expected to bring its experience and expertise from Mauritius and other markets, to enhance competitiveness and the resilience of Kenya’s banking sector.