Former Permanent Secretary acquires top stake in Middle East Bank Kenya
A former Permanent Secretary in the Kenyan government has emerged as the largest shareholder in Middle East Bank Kenya, according to a report by Business Daily.
The development gives the former senior civil servant a controlling interest in the Nairobi-based lender, which operates as part of a network of banks with Middle Eastern ownership active in East Africa. Business Daily reported the shareholding change but did not specify the size of the stake acquired or the consideration paid.
Middle East Bank Kenya is one of several foreign-owned institutions that maintain a presence in the country’s banking sector, which has historically attracted investors from the Gulf states, South Asia and Europe. The Central Bank of Kenya supervises changes in beneficial ownership of locally licensed banks and requires disclosure of transactions above specified thresholds.
Permanent Secretaries are the highest-ranking accounting officers within Kenya’s ministries and government departments. A number of former holders of the position have moved into the private sector after leaving public service, taking up directorships, advisory roles and equity positions in Kenyan companies.
The reported change in shareholding at Middle East Bank Kenya comes against a backdrop of consolidation and restructuring in Kenya’s banking industry, where several mid-tier lenders have in recent years sought fresh capital or new strategic investors amid pressure on margins and rising non-performing loans in some segments.
Business Daily did not indicate whether the transaction has been completed or remains subject to regulatory approval. Further details, including the identity of any outgoing shareholders and the future strategic direction of the bank, had not been disclosed at the time of the report.
Sources
This report was written from coverage published by the following news organisations. Follow the links for the original reporting.
- Business Daily — Former PS takes top stake in Middle East Bank Kenya
