William Byaruhanga, a former attorney general of Uganda, has become the fourth-largest shareholder in Kenya’s Sidian Bank, acquiring a 14.63% stake after buying Sh1.03 billion worth of shares from Centum Investments.
- William Byaruhanga, a former attorney general of Uganda, has become the fourth-largest shareholder in Kenya’s Sidian Bank, acquiring a 14.63%...
- His investment company, Kenbe Investments, negotiated the deal through the division of Bakki Holdings, which had previously owned 40 per...
- Byaruhanga joins major stakeholders Byaruhanga, a longtime real estate, hospitality, and agribusiness investor and a close ally of Ugandan President Yoweri...
- His household’s overall interest is slightly more than sixteen per cent because of his indirect family stake.
Keep reading for the full breakdown on Centum Investments Sidian — everything you need to know is covered below.
His investment company, Kenbe Investments, negotiated the deal through the division of Bakki Holdings, which had previously owned 40 per cent of Sidian. Recent deals have attracted various regional institutional investors, and Centum, the former majority owner, has been gradually reversing its position since shelving a Sh4.3 billion sale to Nigeria’s Access Bank in 2023.
Byaruhanga joins major stakeholders
Byaruhanga, a longtime real estate, hospitality, and agribusiness investor and a close ally of Ugandan President Yoweri Museveni, has joined six institutional owners supporting Sidian’s expansion.
Recent rights issues increased the stakes for Wizpro Enterprises and Afram Limited, which now jointly control almost half the bank, by Sh3 billion over 18 months, diluting the combined holdings of Centum and Byaruhanga.
Byaruhanga did not participate in the recapitalisations despite his substantial entry, resulting in a somewhat diluted shareholding. His household’s overall interest is slightly more than sixteen per cent because of his indirect family stake.
Difficulties ahead for Sidian Bank
Sidian’s low core capital adequacy ratio has drawn attention from the Central Bank of Kenya, which has warned that the bank may face difficulties in times of stress if it doesn’t receive additional funding.
Despite this, Sidian has become one of Kenya’s fastest-growing lenders, as evidenced by its half-year profits, which increased from Sh221 million to Sh1 billion. Most of the 70.8% increase in deposits, which reached Sh59.8 billion, went into government securities, tripling the portfolio to Sh39.3 billion.
Strategically speaking, this acquisition marks the entry of “patient capital” that has the potential to transform Sidian into a tech-driven, specialised participant in the profitable Kenya-Uganda trade corridor.
Sidian’s most feasible route to successful expansion may be a capital-light, fintech-powered model centred on trade finance, digital foreign exchange, and supply chain solutions for companies doing business between the two nations, as its capital base limits traditional lending.