Centum Investment Company has completed its exit from Sidian Bank, bringing to a close a 22-year investment that began with a small stake in a microfinance institution and ended with total cash recoveries that appear to exceed its original entry cost. The NSE-listed investment firm announced on 12 March 2026 that it had sold its remaining interest through the disposal of its 50% stake in Bakki Holdco Limited, the vehicle that held a 13.6% stake in Sidian Bank.
The latest transaction follows an earlier deal in May 2024, when Centum sold half of Bakki Holdco to Kenbe Investments, an investment vehicle linked to former Ugandan attorney-general William Byaruhanga, for Kshs 1.0 bn. Centum had initially attempted a full exit in June 2022, signing a binding agreement to sell its entire 83.4% stake in Sidian Bank to Nigeria’s Access Bank for Kshs 4.3 bn. That deal, however, collapsed in January 2023 after the parties failed to meet certain conditions precedent before the deadline.
Centum’s relationship with the lender dates back to 2004, when it first invested in K-Rep Bank with a minority stake of 1.66%. Over time, the investment firm increased its holdings, eventually acquiring a controlling 83.43% stake through Bakki Holdco. The bank was later rebranded as Sidian Bank in April 2016, a transition that cost approximately Kshs 500 mn.
The failed Access Bank acquisition had financial repercussions for Sidian. Following the attempted sale, the bank was required to pay Kshs 444.0 mn to Danish development financier IFU to settle a conversion right triggered by the transaction, a move that pushed the lender into losses.
After the collapse of the Access deal, Centum began pursuing a phased divestiture strategy. In October 2023, a consortium comprising Pioneer General Insurance, Wizpro Enterprises, and Afram Limited acquired a 38.9% stake in Sidian Bank. This reduced Centum’s holding to 44.5% and ended Sidian’s status as a Centum subsidiary. The initial round of the sale generated proceeds of about Kshs 1.98 bn, while additional transactions later in 2023 and 2024 brought total proceeds from the first 64% sold to roughly Kshs 3.2 bn.
Subsequent rights issues at Sidian Bank, which neither Centum nor Kenbe Investments participated in, diluted Bakki Holdco’s combined stake from 40.0% to 27.3%.
During Centum’s ownership period, Sidian Bank recorded significant balance sheet growth, expanding from Kshs 19.0 bn in 2012 to Kshs 94.8 bn by September 2025. The lender was reclassified by the Central Bank of Kenya as a mid-tier bank in September 2025. Profit after tax for the nine months to that date reached Kshs 1.4 bn, compared with a record full-year profit of Kshs 486.0 mn in 2021, although much of the recent earnings growth was driven by income from government securities rather than core lending activities.
Including the proceeds from the Kenbe transaction and the final sale in March 2026, Centum’s total recoveries from its Sidian investment are estimated at around Kshs 5.2 bn, compared with an entry cost of roughly Kshs 4.7 bn. While this suggests a modest nominal gain, the return may be negative in real terms over the two-decade holding period. Centum also earned dividends and received repayments on shareholder loans from the bank during the investment period.
In its most recent annual report, Centum valued its remaining Bakki Holdco stake at about Kshs 1.0 bn, up from Kshs 900.0 mn a year earlier. The full financial impact of the final exit is expected to be reflected in the company’s results for the financial year ending 31 March 2026. The transaction received regulatory approval from both the Central Bank of Kenya and the Competition Authority of Kenya.
