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Sidian Bank

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Coordinates: 01°17′26″S 36°47′10″E / 1.29056°S 36.78611°E / -1.29056; 36.78611
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Sidian Bank
Company typePrivate
IndustryFinancial services
Founded1984; 40 years ago (1984)
HeadquartersNairobi, Kenya
Key people
James Mworia
Chairman
Chege Thumbi[1]
Managing Director
ProductsLoans, Checking, Savings, Investments, Debit Cards
RevenueIncrease Aftertax:KES:486,227,000 (US$3,684,264) (2022)[2]
Total assetsKES:42.605 billion (US$322.832 million (2022)[2]
Number of employees
590+ (2016)[3]
ParentCentum Investment
Websitesidianbank.co.ke

Sidian Bank, formerly known as K-Rep Bank, is a commercial bank in Kenya, licensed by the Central Bank of Kenya, the national banking regulator.[4]

Location

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The headquarters of Sidian Bank are located at K-Rep Centre, on Wood Avenue, in Kilimani, a neighborhood in Nairobi, the capital and largest city in Kenya.[5] The coordinates of the bank's headquarters are: 01°17'26.0"S, 36°47'10.0"E (Latitude:-1.290556; Longitude:36.786112).[6]

Overview

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The bank is a medium-sized financial services provider, serving the urban and rural poor and small-to-medium business enterprises in Kenya.[7]  As of December 2022, the total assets of the bank were valued at KES:42.605 billion (US$322.832 million), with shareholders equity of KES:5.164 billion (US$39.126 million.[2] The name Sidian is derived from Obsidian, an extrusive igneous rock.[8]

History

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Sidian Bank was founded in 1984 as K-Rep Bank, by Kimanthi Mutua who was then the Managing Director of Kenya Rural Enterprise Program (K-Rep). K-Rep was founded in 1984, by Fred O'Regan under the World Education Inc, with funding from USAID. Its objective then was to develop small-scale businesses in the informal sector. In the beginning, the organization provided grants and technical assistance to non-governmental organizations (NGO). The NGOs then made loans to micro-enterprises. In 1989, K-Rep changed its strategy to lending to NGOs. The technical assistance that had been provided for free now attracted a fee. Kimanthi Mutua, became the Managing Director in 1989 taking over from Dr. Yoder, who succeeded O'Regan in 1997.

In 1999, K-Rep re-organized itself into four entities:[9]

  1. K-Rep Group – This is the parent company. It owns, either wholly or partially, the other three subsidiaries.
  2. K-Rep Development Agency – This agency carries out research and developmental assistance work for the group
  3. K-Rep Advisory Services – This company provides consultancy services for a fee.

In 2015, Centum Investment Company completed its acquisition of a majority stake in the bank.[10] On 4 April 2016, K-Rep Bank re-branded as Sidian Bank, to reflect the majority shareholding by Centum Investments Limited.[11]

Ownership

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As at 31 March 2024, the shareholders in the bank stock included the following:[12]

Sidian BankStock Ownership
Rank Name of Owner Percentage Ownership
1 Bakii Holdco Limited1
40.03
2 Pioneer General Insurance2
24.80
3 Wizpro Enterprises
18.27
4 Afram Limited
7.91
5 Telesec Africa
4.50
6 Pioneer Life Investments Limited
4.49
Total
100.00

1 - Bakii Holdco Limited is a Non-Operating Holding Company and a wholly owned subsidiary of Centum Investments. This is in accordance with the CBK Banking Act and Prudential Guidelines.[13]
2 - K-Rep Group are the entities that founded K-Rep Bank in 1984.[13] The Group sold their entire stake to a group of Kenyan corporate entities led by Pioneer General Insurance, in October 2023.[14]

In March 2019, the Investment Fund for Developing Countries (IFU), a Danish, self-governing, state-owned investment fund, lent Sidian Bank KSh:1,200,000,000 (approx. US$11.2 million). During the next 36 months, IFU has the option to convert some or all of the principal into share capital in the bank. If all the principal is converted into capital, the Fund will acquire 20 percent shareholding in the bank and gain two seats on the expanded seven-person bank board. Each of the other shareholders will be diluted proportionately.[15]

Governance

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The chairman of the seven-person board of directors is James Mworia, one of the non-executive directors. Chege Thumbi serves as the managing director.[1]

Sale to Access Bank Group

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In June 2022, media reports indicated that Centum Investments had signed binding agreements to sale the 83.4 percent that it owned in Sidian Bank to Access Bank Group of Nigeria, for a consideration of KSh4.3 billion (approx. US$37 million). It is expected that after the deal closes, Sidian Bank will be merged with the current Access Bank Kenya, where Access Bank Group maintains 99.98 percent shareholding. The transaction requires regulatory approval in both Kenya and Nigeria.[16]

In January 2023, the time frame set in the sales agreement between the parties expired before they could reach consensus. The parties decided not to extend the deadline and abandoned the transaction.[17]

See also

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References

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  1. ^ a b Mutegi, Mugambi (15 August 2017). "Sidian CEO Titus Karanja resigns after 2-year stint". Business Daily Africa. Nairobi. Retrieved 15 August 2017.
  2. ^ a b c Sidian Bank (28 March 2023). "Financial Statements And Other Disclosures For The Period Ended 31 December 2022". Sidian Bank Limited. Nairobi, Kenya. Retrieved 23 April 2024.
  3. ^ Mugambi Mutegi (24 July 2016). "Sidian Head Hunts Chase Staff To Drive SME Unit". Business Daily Africa. Nairobi. Retrieved 10 July 2020.
  4. ^ Central Bank of Kenya (28 February 2020). "Central Bank of Kenya: Directory of Licenced Commercial Banks, Mortgage Finance Institutions and Authorised Non-Operating Holding Companies" (PDF). Nairobi: Central Bank of Kenya. Retrieved 10 July 2020.
  5. ^ Sidian Bank (10 July 2020). "Sidian Bank: Contact Us". Nairobi: Sidian Bank Limited. Retrieved 10 July 2020.
  6. ^ "Location of the Headquarters of Sidian Bank, Kilimani, Nairobi, Kenya" (Map). Google Maps. Retrieved 10 July 2020.
  7. ^ Moses Michira (21 October 2010). "Private Financiers See Potential In SMEs". Business Daily Africa. Nairobi, Kenya. Retrieved 31 July 2014.
  8. ^ Brian Ngugi (4 April 2016). "Sidian Bank's minority investors to provide Sh400m capital". Business Daily Africa. Nairobi, Kenya. Retrieved 5 April 2016.
  9. ^ MCU (25 January 2012). "MicroCapital Universe: K-Rep Bank". MicroCapital.Org (MCU).
  10. ^ Mwaniki, Charles (20 May 2015). "Centum To Inject KSh1.2 Billion Bond Proceeds Into K-Rep Bank". Business Daily Africa. Nairobi. Retrieved 21 May 2015.
  11. ^ Mugambi Mutegi (27 March 2016). "K-Rep Bank plans name change as it seeks to shed microfinance image". Business Daily Africa. Nairobi. Retrieved 30 August 2018.
  12. ^ Patrick Alushula (23 April 2024). "Sidian Bank founders pocket Sh842m from 16pc stake sale". Business Daily Africa. Nairobi, Kenya. Retrieved 23 April 2024.
  13. ^ a b David Herbling (14 August 2014). "K-Rep report reveals owners of KSh3.8 billion bank". Business Daily Africa. Nairobi. Retrieved 15 August 2017.
  14. ^ Kepha Muiruri (12 October 2023). "New Sidian Bank owners disclosed after Centum sale". Business Daily Africa. Nairobi, Kenya. Retrieved 23 April 2024.
  15. ^ Patrick Alushula (8 March 2019). "Danish fund acquires Sh1.2 billion shares in Sidian Bank". Business Daily Africa. Nairobi. Retrieved 17 August 2020.
  16. ^ Otiato Guguyu (8 June 2022). "Centum sells Sidian Bank for Sh4.3bn to Nigerian lender". Business Daily Africa. Nairobi, Kenya. Retrieved 8 June 2022.
  17. ^ James Anyanzwa (14 January 2023). "Centum cancels sale of Sidian to Access". The EastAfrican. Nairobi, Kenya. Retrieved 23 April 2024.
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01°17′26″S 36°47′10″E / 1.29056°S 36.78611°E / -1.29056; 36.78611

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