Mayfair Bank, a Kenyan lender, is set to be fully acquired by Egypt’s Commercial International Bank (CIB) for $40 million. The acquisition will result from the sale of the remaining 49% stake by 32 investors, including politician Peter Kenneth, lawyer Ambrose Rachier, and city tycoon Amos Gichuki Ngonjo. CIB had already acquired a 51% stake in Mayfair Bank for $35.35 million in April 2020. The bank was founded in 2017 with the aim of serving large and medium-sized firms, as well as high-net-worth individuals.
CIB has played a crucial role in turning Mayfair Bank’s fortunes around, from a loss of Sh379.2 million in 2020 to a profit of Sh357.5 million in the nine months to September. The transaction offers Kenyan investors an opportunity to cash in on their investments and values the bank at Sh10.2 billion, accounting for only 0.26% of the country’s banking market.
The deal, which was agreed on November 23, 2022 and received the nod from the Treasury Cabinet Secretary Njuguna Ndung’u last week, has now come into effect and will result in Mayfair Bank trading as Mayfair CIB. The acquisition offers CIB a platform to expand into the East African region and strengthen the trade and investment ties between Kenya and Egypt.
CIB’s strategy for Mayfair CIB will be focused on trade finance activities and digital banking solutions, particularly growing the Egypt-Kenya trade corridor. The bank is the top private bank in Egypt with assets of around $19.8 billion and aims to support large corporates and SMEs in their business endeavors in the Eastern African hub.
Hussein Abaza, the CEO of CIB, expressed gratitude for the vote of confidence from the governor of the Central Bank of Kenya and the CBK as a whole. Hossam Rageh, the executive director at Mayfair CIB, stated that the bank is excited to be part of Kenya’s business life and future, and aims to grow while providing a first-class service to clients. Mayfair CIB has five branches located in Nairobi, Eldoret, and Mombasa.
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