I&M has acquired 100 percent of Giro Commercial Bank Ltd according to the Central Bank of Kenya.
“This acquisition follows CBK’s approval on October 27, 2016, for IMHL to acquire 100 percent shareholding of GCBL under Section 13 (4) of the Banking Act, and approval by the Cabinet Secretary National Treasury on January 27, 2017, for I&M Bank to acquire 100 percent of GCBL under Section 9 of the Banking Act,” said the CBK in a statement.
Consequently, effective February 13, 2017, GCBL has ceased to be a bank licensed by CBK, and its rights and obligations have been taken up by I&M Bank.
I&M Bank was licensed in 1996, was ranked 9th in terms of market share as at December 31, 2016, with 35 branches. GCBL was licensed in 1992, and was ranked 26th in terms of market share as at December 31, 2016, with 7 branches. Taken together, they had a combined market share of about 5 percent as at December 31, 2016.
IMHL has a banking presence in Kenya, Mauritius, Rwanda, and Tanzania, and is listed at the Nairobi Securities Exchange.
I&M Bank is a wholly owned banking subsidiary of I&M Holdings Ltd. (IMHL) a non-operating holding company, authorized by CBK under Section 13(4) of the Banking Act.
The move underscores I&M’s expansion strategy through acquisitions, having entered into Tanzania, Rwanda and Mauritius by wholly taking over a local bank or buying a majority stake.