What You Need to Know
Centum Investments has finalized the sale of its remaining shares in Sidian Bank, valued at Sh1.1 billion. This transaction marks the end of a series of divestments that began in 2023, with Centum having invested in the bank since 2001. The sale is expected to yield a modest gain and will support Centum’s future investments in Kenya and East Africa.
Africa-Press – Kenya. Centum Investments has disposed its last shareholding in Sidian Bank Limited estimated at Sh1.1 billion concluding a series of transactions that began in 2023.
The final transaction was effected through the sale of Centum’s shareholding in Bakki Holdco Limited, a non-operating holding company that held a 27.27 per cent stake in the lender.
The Nairobi Securities Listed Centum, previously owned 50 per cent of the issued shares of Bakki, and the disposal of this stake results in Bakki ceasing to be a subsidiary of Centum.
Centum chief executive James Mworia said the financial impact of the transaction will be reflected in the company’s results for the financial year ending March 31, 2026.
“The sale is expected to result in a modest gain relative to the previously reported carrying value of Bakki Holdco Limited in Centum’s books,” he said.
The transaction received approvals from the Central Bank of Kenya and the Competition Authority of Kenya.
Centum first invested in the bank in 2001 when it operated as K-Rep Bank. Over the period of Centum’s involvement, the lender expanded its balance sheet from about Sh16 billion in December 2015 to more than Sh90 billion.
Sidian Bank also reported improved profitability, posting more than Sh1.5 billion in profit in its most recent financial year.
Mworia said the exit reflects Centum’s strategy of investing in businesses, supporting their growth and later bringing in new investors to take them to the next stage.
“The proceeds from this transaction will enable Centum to continue investing across key sectors in Kenya and the wider East African region, added Mworia.
Proceeds from the sale will be redeployed into investments across key sectors in Kenya and the wider East African region, according to the company.
“The sale of Centum’s stake in Sidian reflects our strategy of investing in businesses, supporting their growth and transformation, and subsequently attracting other investors to take them to the next phase of development.”
He further noted, “For Centum, this transaction marks the culmination of a journey spanning 25 years. Centum first invested in the Bank in 2001, when it operated as K-Rep Bank. We are proud to have worked alongside fellow shareholders, the board, and management to transform the institution into the strong bank it is today.”
Centum Investments has a long history with Sidian Bank, initially investing in the institution when it was known as K-Rep Bank in 2001. Over the years, Centum played a crucial role in the bank’s growth, helping to expand its balance sheet significantly from Sh16 billion in 2015 to over Sh90 billion. This strategic exit aligns with Centum’s investment philosophy of nurturing businesses and facilitating their growth before transitioning them to new investors for further development. The recent sale reflects Centum’s commitment to reinvesting proceeds into key sectors within Kenya and the East African region.
