22nd November, 2016
Mauritius based bank SMB holdings intends to acquire Kenyan lender fidelity bank in a move aimed at gaining a toehold in local Kenya financial service sector. Details of the transaction are not readily available, though the proposed acquisition, which is subject to regulatory approvals in both Kenya and Mauritius, will mark the first firm commitment by an investor since the capping of interest rates which is thought to have put a damper on the attractiveness of Kenyan lenders for investors. Fidelity commercial bank ltd commenced operations as a non-bank financial institution in June 1992, and converted into a commercial bank in April 1996. It was ranked 31 of 41 banks in terms of market share as at December 31, 2015, with a share of 0.39 percent and fourteen branches around the country.