Commercial International Bank Egypt completes acquisition of Kenya’s Mayfair CIB in $40mln deal

Commercial International Bank Egypt (CIB) is set to proceed with the complete takeover of Kenya’s Mayfair CIB, after obtaining approvals from authorities, in a deal valued at $40 million.

The Central Bank of Egypt (CBE) and the Central Bank of Kenya (CBK) have just granted their consent for CIB to acquire the remaining 49% of Mayfair CIB, CIB said in a statement.

The deal makes Mayfair CIB a fully owned subsidiary of the Egyptian lender. The banking institution last April acquired 51% stake in Mayfair Bank, marking its entry into the Kenyan market.

“We are pleased and grateful for this vote of confidence from [authorities} as we are firm believers in the prospect of prosperity of the Kenyan economy and look forward to our contribution to the same,” said Hussein Abaza, CEO and Managing Director of CIB.

Mayfair CIB saw its operating income rise by 64% to KSH 891.45 million ($8.2 million) in 2021. Profits, after tax, stood at KSH 96.1 million compared to a net loss of KSH 279.3 million.

Hossam Rageh, Executive Director at Mayfair CIB, believes Kenya offers great opportunities. The Eastern African country has a population of more than 53 million and is home to 39 commercial banks.

“We are excited to be part of the country’s business life and future. We will grow this bank as we continue to provide a first-class service to all our clients,” he said.