Friday May 21, 2021
NAIROBI (HOL) - Djibouti’s leading bank, Salaam African Bank (SAB), has expanded its presence in Kenya by acquiring a microfinance bank barely two years after being licensed to operate an investment bank in the East African nation.
The Central Bank of Kenya announced Thursday Salaam African Bank had acquired 100% ownership of Nairobi-based Uwezo Micro Finance Bank (Uwezo MFB).
“The Central Bank of Kenya (CBK) announces the acquisition of 100 percent shareholding of Uwezo Microfinance Bank Limited (Uwezo MFB) by Salaam African Bank (SAB) of Djibouti effective March 25, 2021,’ the Kenyan regulator said.
The acquisition of Uwezo adds to Salaam’s portfolio in Kenya. The bank was licensed by the Capital Markets Authority (CMA) in December 2018 to operate Salaam Investment Bank in Kenya.
SAB was established in Djibouti in 2007 and is licensed and regulated by the Central Bank of Djibouti as one of the three Islamic banks in Djibouti.
The bank, which holds 30 percent of the total bank accounts in Djibouti, has the highest number of branches and Automated Teller Machines (ATMs) in Djibouti.
According to CBK, Uwezo MFB was licensed by CBK on November 8, 2010, as a community microfinance bank carrying out business in the Starehe Division of Nairobi County.
The institution was granted approval to upgrade to a nationwide microfinance bank in December 2015.
Uwezo MFB had a market share of 0.45 percent of the microfinance banking sector and was ranked 10 out of 14 MFBs as of March 31, 2021. It has one branch in Nairobi.