Centum Investment Company Fails to Sell Stake in Sidian Bank

In a major setback for the Kenyan financial sector, Centum Investment Company has failed to consummate the sale of its 83.4% stake in Sidian Bank to Access Bank PLC. The company cited failure to secure all prerequisite conditions as agreed and said that the parties have failed to reach acceptable terms for the transaction. Centum Investment Company is one of Kenya’s largest private equity firms and has been a major player in the banking industry since its inception in 2003. The company had planned to sell its majority stake in Sidian Bank, which it acquired from KCB Group back in 2015, but was unable to do so due to disagreements over terms between Access Bank PLC and Centum. The news of this failed transaction comes as a surprise as both companies had been working towards finalizing the deal since early 2019 when it was first announced. It also follows on from recent reports that Access Bank PLC had secured approval from regulators for the acquisition of Sidian Bank’s shares from Centum Investment Company. This failure could potentially have serious implications for both companies involved as well as other stakeholders within the banking sector. Analysts believe that this could lead to further consolidation within Kenya’s banking industry with smaller banks being taken over by larger ones or even being forced out of business altogether due to lack of funds or resources. For now, however, it remains unclear what will happen next with regards to this failed transaction between Centum Investment Company and Access Bank PLC. Both companies are yet to make any official statement regarding their plans moving forward but analysts expect more details on this matter soon enough.