By Sylvester Mwaringa
Mayfair CIB – formerly Mayfair Bank Limited (MBL) will focus on trade finance products through facilitating trade flows & transactions between importers and exporters across domestic markets, it has emerged.
At a recent interview, Hussein Abaza, the CEO of CIB, added that the financial institution will also have digital banking services to tap into the favourable Kenyan Cloud banking regulations, and to expand its position as a niche trade player.
When asked why Mayfair, he replies “In part, this is a trade play…The country is a huge buyer of Kenyan tea for one, “ he added, with Egypt being the second largest importer of Kenyan tea in the International markets.
“East Africa, because of proximity, because of language,” he added, “is a much more natural starting point for us, compared to the West African giants.”
The focus is a good catalyst for intra-African trade and the financial market.
This comes after a recent publicization by The Commercial International Bank (Egypt) S.A.E that it had been granted the approval by the Central Bank of Kenya and Central Bank of Egypt to purchase the remaining 49 percent shares into the Kenyan tier three lender.
The transaction valued at Ksh$40 million now makes it a fully owned subsidiary of CIB, weaving the new owners into the Kenyan market, and cementing their presence into the larger sub-Saharan African market.
The EGX-listed lender pierced the Kenyan market in April 2020 by purchasing a 51 percent shareholding worth Ksh3.7 Billion ($USD 35 million ) in Mayfair due to its attractive trade finance incentives.
CIB, licensed in 1975, is the leading private-sector bank in Egypt, ending their fiscal year 2022 with over US$26 billion worth in assets, US$527.24 million in net earnings and a 17 percent higher shareholder value than the previous quarter.
The Bank offers a broad range of financial products and services to its customers, mainly SMEs, Large corporations and high-net worth individuals.
Conversely MBL sprung up as a greenfield investment by 31 Kenyan investors and was licensed in June 2017. Some of these 31 investors include thirteen being corporate and eighteen individuals.
As of September 2022, the bank’s total assets were valued at Ksh13.4 billion (US$106 million), with shareholders’ equity of Ksh4.34 billion (US$34.59 million).
Mayfair CIB Bank is a retail banking institution, serving small to medium enterprises, large corporate clients and individuals.
Mayfair CIB Bank is governed by a ten-person Board of Directors with Tom Gitogo serving as the Chairman and Hossam Rageh as the CEO