CIB Egypt bank eyes takeover of Kenyan bank Mayfair

Commercial International Bank (CIB), Egypt’s largest private lender, is planning to buy one of Kenya’s lower-tier banks in the latest tie-up to be revealed in the East African nation.

CIB has applied for a portion of Kenya’s Mayfair Bank Ltd., according to the Competition Authority of Kenya. The move follows four other banking tie-ups in the nation this year.

“The Authority is currently analyzing the application,” the antitrust agency said in an emailed response to Bloomberg’s questions.

Mayfair is Kenya’s fourth-smallest lender with a market size index of 0.16 percent, according to central bank data. It was licenced in June 2017 and has doubled its half-year loss in the six months to June 2019 to 161.4 million shillings ($1.57 million). If approved, CIB will become the first Egyptian bank to establish shop in Kenya.

This year, NIC Group Plc merged with Commercial Bank of Africa Ltd., while KCB Group Ltd.’s purchased National Bank of Kenya Ltd. Equity Group Holdings Plc agreed to give Atlas Mara Ltd. some shareholding in return of four African operations, while Access Bank Plc, Nigeria’s biggest lender, also received the greenlight last month to take over Transnational Bank Ltd.

Kenya’s central bank governor, Patrick Njoroge, has urged commercial lenders to merge operations to create bigger and more resilient entities in the nation with about 40 banks catering for 47 million people.

Source: Bloomberg