The Central Bank of Kenya (CBK) has approved the acquisition of 62.5 per cent of the shareholding of First Community Bank Limited (FCB) by Premier Bank Limited, Somalia (PBLS) effective March 27, 2023.
This follows CBK’s approval on March 13, 2023, in accordance with Section 13(4) of the Banking Act, and on March 16, 2023, the Cabinet Secretary for the National Treasury and Planning approved it under Section 9(1) of the same act.
On April 29, 2008, CBK granted FCB a license to engage in Shariah-compliant banking operations.
FCB operates eighteen (18) branches throughout the country and specializes in offering Shariah-compliant financial services to both corporate and retail customers.
As of December 31, 2022, FCB is classified as a small bank with a market share of 0.3 per cent.
In 2014, the Central Bank of Somalia granted a license to PBLS, a privately-owned commercial bank that adheres to Shariah principles and provides an extensive selection of financial products and services. With 20 branches, 80 ATMs, and over 600 point-of-sales merchants, PBLS is a sizable bank in Somalia, representing 16% of the banking sector’s assets.
PBLS’s primary focus for its business model is on serving retail customers, small and medium-sized enterprises (SMEs), and corporate clients.
As the initial bank in Somalia to establish a mostly-owned banking subsidiary in Kenya, PBLS’s acquisition will bolster trade and investment relations between the two countries.
CBK welcomes this transaction that will diversify and strengthen the resilience of the Kenyan banking sector.
Central Bank of Kenya
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