SBM Holdings, Mauritius’s second-biggest bank, has agreed to acquire Kenya’s Fidelity Commercial Bank by the end of this year.

The bank in statement to shareholders said move forms part of its growth strategy into East Africa.

SBM added that it will inject KES1.45bn of fresh capital into Fidelity following the receipts of all due regulatory approvals.

Founded in 1992 as a non-bank financial institution, Fidelity Bank became a commercial bank in 1996. It currently has 14 branches across the country.

Welcoming the proposed deal, the Central Bank of Kenya said: “SBM Group will bring its experience and expertise from Mauritius and other markets to enhance competitiveness and resilience of Kenya’s banking sector.”