Centum Investment Company has entered into a new deal to sell its Sh1 billion stake in Sidian Bank. This marks Centum’s ongoing efforts to streamline its portfolio and focus on high-growth investment opportunities.
Sidian Bank, a mid-tier financial institution in Kenya, has been a part of Centum’s portfolio for several years, but the sale signals Centum’s strategy to divest from certain sectors while consolidating investments in areas that align with its long-term goals.
The Sh1 billion transaction will allow Centum to release capital from Sidian and redeploy it into other investments, particularly in the real estate, private equity, and infrastructure sectors, where Centum has been experiencing strong growth.
This decision reflects Centum’s broader approach of optimizing its portfolio for value, ensuring that resources are allocated to sectors that promise the highest returns on investment.
Centum’s CEO, James Mworia, commented on the deal, noting that the sale of the Sidian stake is part of the company’s Centum 5.0 strategy. This strategy emphasizes value creation, optimization of the existing portfolio, and capitalizing on high-growth sectors to ensure sustainable profitability for shareholders.
Mworia emphasized that the company remains focused on prudent investment practices while identifying pockets of opportunity in volatile market conditions.
For Sidian Bank, the sale of Centum’s stake may open doors for new strategic partnerships and investors who can help the bank scale its operations further. Sidian has been a key player in the SME banking sector in Kenya, and new capital injections from fresh investors could enhance its ability to offer better services and products.
The sale is expected to be finalized soon, pending regulatory approval. As Centum continues to realign its portfolio, the company’s focus on high-return investments in key sectors is likely to strengthen its position as a leading investment firm in East Africa.
