Egypt’s Commercial International Bank is set to acquire a majority stake in Mayfair Bank, a lender based in Kenya.
Currently, the Competition Authority of Kenya is assessing the Egyptian lender application, Reuters reported. However, the local completion authority did not provide any definite timeframe to announce its decision.
Additional particulars on the transaction, including financial details, were also not available immediately.
In 2017, Mayfair Bank secured the licence to conduct banking operations in Kenya.
Headquartered in Nairobi, the bank offers corporate, business and personal banking services. The bank has five branches in the country, of which three are located in the capital.
In the financial report for the first nine months of the year, Mayfair Bank registered a loss of KES250m.
In the last three years, the Kenyan banking sector witnessed a series of consolidations and mergers. The number of deals increased after the government decided to ceil interest rates that, in turn, restricted bank profits.
Earlier, the central bank of the country approved the merger of NIC Group (NIC) and Commercial Bank of Africa (CBA). The merger, now complete, created the third-largest bank in Kenya by assets.
There are around 40 commercial banks operating in Kenya to serve a population of around 47 million.