Sidian Bank, a mid-tier commercial bank in Kenya, has undergone notable ownership changes since its establishment in 1984.
Early History
The bank was originally founded as K-Rep Bank by Kimanthi Mutua under the Kenya Rural Enterprise Program (K-Rep). It began as a development project aimed at supporting small and micro-enterprises.
In 1987, K-Rep was incorporated as a local non-governmental organization (NGO). Two years later, in 1989, it began offering loans to other NGOs, laying the foundation for its microcredit lending operations. This model evolved over time, and in 1999, the institution was licensed as a commercial bank under the name K-Rep Bank.
Centum Investment and Rebranding
A major turning point came in 2014 when Centum Investment Company, a leading Kenyan investment firm, acquired a controlling stake in K-Rep Bank. This acquisition was completed in 2015.
Following this, the bank rebranded to Sidian Bank on April 4, 2016. The new name was inspired by “obsidian,” a volcanic rock symbolizing strength and resilience. The rebranding reflected Centum’s majority ownership, held through its subsidiary, Bakii Holdco Limited.
By 2019, Bakii Holdco held about 80.19% of Sidian Bank, establishing Centum as the dominant shareholder. During this time, the bank attracted strategic funding, including a KSh 1.2 billion loan from the Investment Fund for Developing Countries (IFU) in March 2019. This loan included an option for IFU to convert part of the principal into a 20% equity stake within three years.
Despite Centum’s dominance, the K-Rep Group and other minority investors, such as KWA Multi-Purpose Co-operative Society, continued to hold smaller stakes.
Entry of New Investors
By 2022, Centum began reducing its ownership in the bank. In June of that year, it announced plans to sell its 83.4% stake to Nigeria’s Access Bank Group for KSh 4.3 billion, with the goal of merging Sidian Bank with Access Bank Kenya. This transaction, however, was pending regulatory approvals in both Kenya and Nigeria and has not yet been finalized.
In late 2023, further changes took place. A consortium of Kenyan companies, led by Pioneer General Insurance, acquired a 16.57% stake previously held by the K-Rep Group, KWA Multi-Purpose Co-operative Society, and individual shareholders. The acquisition—worth KSh 841.66 million—marked the full exit of the K-Rep Group, which had once held an 11.4% stake.
In October 2023, Centum sold an additional 38.91% stake to the same consortium. Then in 2024, it announced plans to offload a further 18.9% stake for KSh 1.03 billion, bringing its shareholding down to 15.2% by September 2024. These transactions valued Sidian Bank at around KSh 5.08 billion, based on Centum’s financial statements for the year ended March 31, 2023.
Current Ownership and Outlook
Today, Sidian Bank is primarily owned by a group of institutional investors led by the Pioneer consortium. Centum, through Bakii Holdco, retains a minority stake. The status of the proposed Access Bank deal remains unclear, as regulatory approvals are still pending.
Meanwhile, the potential for the IFU loan to convert into equity remains open, which could further alter the bank’s shareholding structure.
