The number of Kenyans with big stakes in the banking sector is set to increase following the deal by Egypt’s largest private lender, Commercial International Bank (CIB), to inject Sh3.7 billion into Mayfair Bank.
The bank, now to be known as Mayfair CIB Limited, is about two and a half years old in the market.
It was formed by 28 investors, among the 25 from Kenya, two from Britain and one each from Uganda and Mauritius.
Some of the shareholders include top lawyer and former chairman of Gor Mahia FC Ambrose Rachier, Amos Gichuki Ngonjo of logistics firm Bonafide, and Marx Okonji, a top doctor in Nairobi, according to official shareholder list from Registrar of Companies.
Politician Peter Kenneth is also a shareholder of the bank through Mayfair Insurance Company.
What emerges from the list is that none of the shareholders of the bank owns more than 6.6% of the company, meaning that the Egyptian lender, with 51% of the company will have a strong hand in deciding the direction of the bank.
It is likely that the bank, with backing from the Egyptian partner, may shake the local banking industry given its financial muscle available for deployment.
Way ahead of Kenyan banks
The African Business ranked CIB as the third-largest bank in Egypt and the 24th in Africa, ahead of Kenyan banks based on the 2019 financial results, with an asset base of 1.9 trillion.
Its closest Kenyan competitor in that ranking was KCB at position 38 and Cooperative Bank at position 42.
Since it was licensed by the Central Bank of Kenya in 2017, Mayfair has pursued a model of corporate banking, leaving out the mass market for the big players.
But according to Bloomberg, (CIB) provides tailored and client-centric services to clients in the corporate, commercial, retail, wealth, and SME spheres.
It serves an expansive network of retail customers, high-net-worth individuals, enterprises, and institutions with its 200 branches and units.
Mayfair CIB Chairman Anjay Patel reportedly said the new share subscription will be added to the institution’s capital base.
Mayfair Bank was licensed in June 2017 and commenced operations in August 2017. The bank has five branches in Nairobi, Eldoret and Mombasa.
It targets high net worth individuals and the corporate market segment. It is categorized as a small bank with a market share of 0.17 percent as of February 2020.