Centum Investment Company has completed the sale of its remaining stake in Sidian Bank, bringing to a close a 22-year investment that began with a small holding in a microfinance lender and ended with total cash recoveries that appear to exceed the group’s initial entry cost.
The Nairobi Securities Exchange-listed investment firm announced on 12 March 2026 that it had sold its 50% stake in Bakki Holdco Limited, the holding company through which it owned 13.6% of Sidian Bank.
This final transaction marks the last step in a multi-year exit strategy after earlier attempts to sell the bank outright stalled.
In May 2024, Centum sold half of Bakki Holdco to Kenbe Investments, the investment vehicle of former Ugandan Attorney-General William Byaruhanga, in a deal valued at KSh 1.032 billion.
Centum had previously attempted a full exit in June 2022, signing a binding agreement to sell its 83.43% stake in Sidian Bank to Nigeria’s Access Bank for KSh 4.3 billion. That transaction would have come close to the firm’s estimated KSh 4.7 billion total investment in the lender.
However, the agreement collapsed in January 2023 after certain conditions precedent were not met before the deadline.
The failed deal carried financial consequences. Sidian Bank was required to pay KSh 444 million to Danish development financier IFU to settle a conversion right triggered by the attempted sale, a cost that pushed the lender into losses at the time.
From Microfinance Stake to Mid-Tier Bank
Centum first invested in K-Rep Bank in 2004, gradually increasing its ownership over the following decade until it held a controlling 83.43% stake through Bakki Holdco.
The bank was later rebranded as Sidian Bank in April 2016, a transformation that cost around KSh 500 million.
After the Access Bank transaction collapsed, Centum opted for a phased divestiture strategy.
In October 2023, a consortium made up of Pioneer General Insurance, Wizpro Enterprises, and Afram Limited acquired 38.91% of Sidian Bank, reducing Centum’s stake to 44.52% and ending the lender’s status as a Centum subsidiary.
Proceeds from that initial round were estimated at KSh 1.98 billion.
Additional share sales through late 2023 and 2024 further reduced Centum’s holding, with the company confirming KSh 3.2 billion in proceeds from the first 64% stake sold.
At the same time, rights issues at Sidian Bank diluted Bakki Holdco’s combined stake from 40% to 27.27%, as neither Centum nor its partner Kenbe Investments participated in the capital raises.
Growth under Centum Ownership
During Centum’s tenure, Sidian Bank expanded significantly. The lender’s balance sheet grew from KSh 19 billion in 2012 to KSh 94.8 billion by September 2025, representing nearly five-fold growth.
In September 2025, the Central Bank of Kenya reclassified the lender as a mid-tier bank, reflecting its larger asset base.
Profitability also improved in recent years. Profit after tax reached KSh 1.4 billion for the nine months to September 2025, compared with the bank’s previous full-year record of KSh 486 million in 2021.
However, analysts note that much of the recent earnings growth has been driven by income from government securities rather than core lending activity.
Financial Outcome of the Exit
Including the earlier sale to Kenbe Investments and the final March 2026 transaction, Centum’s total recoveries from Sidian Bank are estimated at about KSh 5.2 billion in confirmed and expected cash proceeds.
This compares with an estimated total investment cost of roughly KSh 4.7 billion.
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While the nominal return appears positive, the gain is modest after accounting for inflation over the 22-year holding period. The group did, however, receive dividends and shareholder loan repayments from the bank during its investment period.
In Centum’s most recent annual report, the Bakki Holdco stake was valued at around KSh 1.0 billion, up from KSh 900 million the previous year. The full financial impact of the final sale will become clearer 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.
