Sidian Bank, a third tier bank and a subsidiary of Centum, has received KSh1.2 billion ($12 million) funding from a Danish organization – Investment Fund for Developing Countries (IFU) – to help the lender progress into a second tier bank.
Centum owns 77 percent of Sidian Bank. During the signing, Centum’s CEO Dr. James Mworia expressed his excitement saying, “We are pleased with the decision by IFU to invest in the bank. This is a major vote of confidence in Sidian Bank and its strategic initiatives by an institutional investor with significant investments in financial services companies across the globe.”
The funds will boost the lenders capital ratio as required by law. They will also be used to grow the bank’s lending to Small and Medium sized businesses.
IFU is a Danish organization with investments in more than 100 developing nations. IFU’s Vice president said that their new strategy involved funding financial institutions with a focus on SMEs. Their investment in Sidian bank was the first of its kind under the new plan.