It is now official, SBM Africa Holdings finally buys Fidelity Commercial Bank

The Central Bank of Kenya (CBK) this morning announced that SBM Africa Holdings Limited has successfully acquired majority stake in Fidelity Commercial Bank, paving the way for Fidelity Commercial Bank to be renamed to SBM Africa.

SBM Africa is a fully-owned subsidiary of SBM Holdings Limited of Mauritius and has been approved by CBK as a Non-Operating Holding Company under Section 13 of the Banking Act. CBK has also approved the change of name from Fidelity Commercial Bank Limited to SBM Bank (Kenya) Limited, under Section 3 of the Banking Act.

Welcoming this acquisition, CBK Governor Dr. Patrick Njoroge said, “The entry of SBM Group into Kenya provides a welcome impetus to our banking sector. SBM will bring its experience and expertise from Mauritius and other markets, to enhance the competitiveness and resilience of Kenya’s banking sector.

Going forward, SBM is well poised to play a significant role in financing intra-Africa trade and investments, using Kenya as a launching pad into other African markets. CBK welcomes this milestone in the strengthening of the banking sector, that will lead to the emergence of a world-class financial sector.”

At the time of going to press, the website of Fidelity Commercial Bank Limited was down so we could not be able to counter check if there was any issued statement by the bank in regards to the acquisition. Fidelity Commercial Bank has however been poised as a medium-sized retail bank in Kenya, serving mainly the urban areas of Nairobi and Mombasa. As of December 2013, Fidelity Commercial Bank had an asset base of about US$147.8 million and was ranked number 32, out of the 43 licensed commercial banks in the country.

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SBM Holdings that has just acquired the Fidelity Commercial Bank praises itself as a leading financial services group in Mauritius with a growing international presence. It provides all services of a universal bank within a diversified business model. The lines of business include: Retail Banking, Small and Medium Enterprises, Wealth Management & Private Banking, Corporate Banking and International Banking & Global Business, Treasury services, eBusiness, Fiduciary services, Asset Financing, Stock brocking and Asset Management.

Odipo Riaga
Managing Editor at KachTech Media
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