Kenya’s top-tier lender acquires Orient Bank in Uganda

Kenya’s top-tier lender, Investment and Mortgages (I&M) Bank, has received shareholder approval to acquire 90% stake in Uganda’s Orient Bank, according to market analysts, Cytonn Investments.

The Nairobi Security Exchange (NSE) listed lender, ranked Kenya’s eighth largest by assets at US$2.52 billion, will acquire the Ugandan bank for US$32 million following the approval of shareholders, Cytonn said.

The latest transaction follows the I&M acquisition of Giro Commercial Bank in 2017, which was then ranked Kenya’s 26th largest bank out of the 40 licensed banks.

I&M has banking presence in Kenya, Mauritius, Rwanda and Tanzania with about 5% of then Kenyan banking industry market share, according to the Central Bank of Kenya (CBK).

The bank’s asset acquisition amount will be subject to adjustments on account of several factors including exchange rate fluctuations and amounts raised from the sale of the Ugandan bank’s property in Kampala (Orient Plaza), Cytonn said.

The two banks entered negotiations in July 2020, according to Cytonn.

The transaction is still subject to approval from the Central Bank of Kenya, Central Bank of Uganda, the Capital Markets Authority as well as the company shareholders. Orient Bank has book value of Ushs 114.0 bn US$31 million.

I&M will become the fourth Kenyan bank to enter the Ugandan market.