Egypt’s Commercial International Bank (CIB) is acquiring a 51 percent of the shareholding of Kenya’s Mayfair Bank Limited (MBL).
Commercial International Bank is the largest private lender in Egypt. The acquisition will see the bank inject inject Sh3.7 billion in Mayfair Bank. This follows CBK’s and the Cabinet Secretary for the National Treasury approval pursuant to Section 9 of the Banking Act. Mayfair will also now operate under a new name Mayfair CIB Bank Limited as from May 1.
MBL was licensed in June 2017 and commenced operations in August 2017. The bank has five (5) branches in Nairobi, Eldoret and Mombasa. It targets high net worth individuals and the corporate market segment. It is categorised as a small bank with a market share of 0.17 percent as at February 2020.
CIB on the other hand was licensed by the Central Bank of Egypt on August 13, 1975. It is currently the leading private sector bank in Egypt with a total asset base of approximately USD24.18 billion (Ksh.2.45 trillion). CIB is listed on the Egyptian Stock Exchange, London Stock Exchange and trades over the counter on the New York Stock Exchange. CIB has representative offices in the United Arab Emirates (UAE) and Ethiopia.
CIB’s business model focuses on individuals, Small and Medium Enterprises (SMEs), institutions and corporates. CIB is the first Egyptian bank to establish a presence in Kenya. CIB’s acquisition of a majority stake in MBL according to the bank will anchor its expansion into the East African region. Its entry, the bank says will also strengthen the trade and investment ties between Kenya and Egypt.