SBM Holdings Ltd (SBM Group) ofMauritius has concluded the acquisition of Fidelity Commercial Bank in Kenya through its subsidiary SBM Africa Holdings Ltd, marking its entry Africa.
Fidelity Commercial Bank will operate under SBM Bank (Kenya) Limited. All its branches and ATMs will be rebranded to SBM Bank. The new owners have appointed a new Board of Directors and plan to inject $20.6 million (Ksh2.6 billion) of capital in its first year of operations.
Central Bank of Kenya (CBK) Governor Patrick Njoroge said the entry of SBM Group in Kenya provides the much needed stimulation for the banking sector, which is smarting from the collapse of several banks over the past two years.
SBM will bring experience and expertise from Mauritius and other markets, to enhance the competitiveness and resilience of Kenya’s banking sector, he said.
“BM is well poised to play a significant role in financing intra-Africa trade and investments, using Kenya as a launching pad into other African markets. CBK welcomes the interest of foreign banks that will contribute to the emergence of a world-class financial sector,” said Dr Njoroge.
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The Chairman of the SBM Holdings Ltd, Mr. Kee Chong Li Kwong Wing, said SBM Group has been accessing corporate clients in Kenya through its offshore segment.
“Now, it is a shift from suitcase banking to direct brick-and-mortar branch banking. SBM’s entry into Africa begins from Kenya as hub for East Africa expansion followed by expansion into other regions,” he said. “The strength of SBM is its ability to deploy capital and liquidity from other operating jurisdictions, and provide comfort to wholesale depositors in Kenya for placement of their surplus funds.”
The credit deployment in the initial stage would be to large corporates and the SME segment before extension into retail and small finance products.
The new Board of Directors for SBM Bank (Kenya) Limited are Mrs. Flora Mutahi, Mr. Jim McFee and Mr. Sharad Rao with Mr Jotham Mutoka as the acting CEO ahead of the appointment of a Kenyan Managing Director to be announced at a later date.
SBM Bank (Kenya) Limited will retain branches and staff members of the acquired bank and will thus have 6 branches in Nairobi and 4 branches in Mombasa.
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Founded in September 1973 and headquartered in Mauritius, SBM is one of the leading financial institutions in the country, with total assets of Ksh437 billion as at December 2016. SBM Holdings Ltd is listed on the Stock Exchange of Mauritius, with a market capitalisation of Ksh59.3 billion as at 31st January 2017, representing third largest listed companies in Mauritius.
SBM’s sound fundamentals and financial stability have earned its recognition at both local and international levels. SBM has received numerous awards including the Best Bank in Innovation in 2015 and Best Bank in Retail in 2016.
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