Competition Authority of Kenya acting Director General Adano Wario approved the proposed acquisition of First Community Bank (FCB) by Somalia’s Premier Bank Limited.
It is not yet clear how much the transaction will cost. Premier Bank is a privately owned Sharia-compliant commercial bank incorporated in Somalia in 2013 and licensed by the Central Bank of Somalia in 2014.
In a notice in the Kenya Gazette issued on Friday, March 3, Wario gave the proposed merger a clean bill of health.
“Pursuant to the provisions of section 46 (6) (a) (ii) of the Competition Act, 2010, it is notified for general information that in the exercise of the powers conferred upon the Competition Authority of Kenya by section 46 (1) of the Competition Act, the Competition Authority of Kenya has authorized the implementation of the proposed merger as set out herein,” the notice read.
According to data from the Central Bank of Kenya, FCB had assets totalling Sh24 billion and deposits totalling Sh21.5 billion as of June 2022.
It was ranked position 27 out of 39 with a market share of 0.38%. The bank started operations in 2008 and became the first Islamic bank in Kenya.
“15 yrs ago…two ivy league lawyers (Hon. Abdikadir Harvard and Ahmednasir) and a number of their clients started the first Islamic Bank in Kenya, First Community Bank,” Senior Counsel Ahmednasir celebrated in 2022.
The proposed merger between FCB and Premier Bank Limited comes hot on the heels acquisition of other banks in Kenya.
In January, CBK announced the complete acquisition of Mayfair Bank by Egypt’s Commercial International Bank (CIB).
CIB had earlier in May 2022, acquired 51% of Mayfair Bank for Sh4.4 billion ($35.35 million).
In January, CIB took full ownership of the Kenyan lender, making it a fully-owned subsidiary of the bank, having spent a total of Sh9 billion.
Central Bank also announced that Equity Bank Kenya Limited (EBKL) officially acquired the assets and liabilities of Spire Bank Limited, effective January 31.
