I&M Holdings, a banking group in Kenya, has acquired 90% share in Orient Bank for an undisclosed amount. I&M purchased the bank from 8 miles and Morka Holdings.

The acquisition agreement signed by I&M and Orient Bank in July 2020 was completed last month.

Central Bank of Kenya, Bank of Uganda, Capital Markets Authority of Kenya and the COMESA Competition Authority approved the transaction.

Part of I&M’s growth and expansion strategy in Eastern Africa, this move helps the group foray into Ugandan market. The strategy involves local and regional investment to serve all types of customers and promote trade flows in the region.

All I&M customers in Uganda will have access to its Corporate, Business, Personal Banking, and Treasury and Trade Finance solutions.

I&M group executive director Sarit Raja Shah said: “I&M Group aspires to be Eastern Africa’s leading financial partner for growth. The acquisition of OBL will place I&M Bank in an advantageous position to capitalise on the growth in the Eastern African economies and thereby ultimately increasing shareholder value.”

Shah added that the deal will allow the group to extend its network to regional customers and improve profitably.

Orient Bank CEO Kumaran Pather noted: “The acquisition of OBL into I&M Holdings PLC will see the new entity rise to greater heights and allow us to broaden our market reach and penetration.”

With the transaction, I&M obtains net loan assets worth KES7.7bn ($70.8m) and deposits worth KES18.2bn ($167.39m) held by Orient. The bank also has a customer base of nearly 70,000, with 340 employees, 14 branches and 22 ATMs across Uganda.

I&M expects integration of Orient to yield significant business and operational synergies. Meanwhile, Orient customers will benefit from I&M’s range of financial solutions.

The group previously acquired all of the issued share capital in Giro Commercial Bank (GCBL).