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Updated Apr 28, 2020
Patrick Njoroge, Governor, Central Bank of Kenya participates in a conversation entitled "Raising the bar : What works to reduce poverty and spur growth" at the World Bank headquarters in Washington DC, ion October 16, 2019. Eric BARADAT / AFP
Patrick Ngugi Njoroge, governor of the Central Bank of Kenya, at the World Bank headquarters in Washington D.C. (Eric Baradat/AFP)

 

In a press release, the Central Bank of Kenya announced that Egypt’s Commercial International Bank (CIB) had acquired 51 percent of Mayfair Bank Limited (MBL), one of Kenya’s youngest financial institutions. The acquisition comes into effect on May 1.

CIB, Egypt’s largest private banking enterprise, paid US$35.35 million for the 51 percent share in MBL, which has only been operating since August 2017 and has captured a mere 0.17 percent of the Kenyan market share. CIB chairman and managing director Hisham Ezz Al-Arab described the acquisition as part of a strategy to expand in Africa.

 

A Win for Kenya and Egypt

The Central Bank of Kenya said the acquisition was expected to diversify and strengthen the resilience of the Kenyan banking sector.

And for Egypt, expanding its fiscal portfolio into East Africa may win the country support in its diplomatic disputes with Ethiopia over objections to the implementation of the Grand Ethiopian Renaissance Dam, and help to mitigate economic losses as a result of the COVID-19 pandemic.
 

David Malpass (2nd R), President of the World Bank Group, Patrick Njoroge (R), Governor of the Central Bank of Kenya, Mohamad Al-Ississ (2nd L), Minister of Planning and International Cooperation & State Minister for Economic Affairs of Jordan and Aïchatou Boulama Kané (C), Minister of Planningof Niger participate in a conversation entitled "Raising the bar : What works to reduce poverty and spur growth" at the World Bank headquarters in Washington DC, ion October 16, 2019. Eric BARADAT / AFP
Ministers representing low- and middle-income countries joined World Bank Group president David Malpass at the World Bank headquarters in Washington D.C. on October 16, 2019, to discuss inclusive growth, poverty reduction, and growth. (Eric Baradat/AFP)
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