Centum, controlled by Kirubi family, cuts stake in Sidian amid cash call

Key Points

• Centum reduces its stake in Sidian Bank to 29.26% following a Ksh1.9 billion ($14.7 million) rights issue to strengthen the bank’s capital base.
• James Maina Muthoni, Afram Limited’s sole owner, increased his stake from 7.91% to 21.4%, becoming one of the bank’s key shareholders.
• Centum shifts focus to real estate, private equity, and marketable securities, while Sidian Bank uses new funds to compete in Kenya’s banking sector.

Centum Investment Company, the investment firm linked to the family of the late Kenyan tycoon Chris Kirubi, has further reduced its stake in Sidian Bank as the lender raises new capital to strengthen its position in the mid-tier banking segment. The fresh funds are expected to boost Sidian’s lending capacity and sharpen its competitive edge against established rivals.

Centum’s stake drops to 29.26% amid capital raise

Centum’s shares in Sidian dropped from 40.03 percent to 29.26 percent following a Ksh1.9 billion ($14.7 million) rights issue aimed at shoring up the bank’s balance sheet.  The investment firm, which held an 83.4 percent stake at the beginning of 2023 through its subsidiary, Bakki Holdco Limited, has been gradually scaling back its banking exposure.

The capital raise opened the door for new investors, including James Maina Muthoni, the sole owner of Afram Limited, who increased his stake from 7.91 percent to 21.4 percent, making him one of Sidian’s key shareholders.

With assets ranging between Ksh50 billion ($386.82 million) and Ksh150 billion ($1.16 billion), Sidian Bank is using the fresh injection to expand operations in Kenya’s highly competitive banking industry. Meanwhile, Centum continues to reshape its investment focus, prioritizing real estate, private equity, and marketable securities.

Centum’s legacy and the Kirubi family’s influence

Centum remains one of East Africa’s leading investment firm, with interests spanning real estate, private equity, and sectors such as consumer goods, financial services, agribusiness, and power.

Chris Kirubi, one of Kenya’s most influential businessmen and investors, passed away in 2021 at the age of 80, leaving behind an estate worth Ksh20 billion ($176 million). His portfolio included significant stakes in Centum, KCB Group, Haco Industries, and Bendor Estate Limited.

Following his death, his children, Robert Kirubi and Mary-Ann Musangi, inherited 80 percent of his fortune, ensuring the family’s continued influence over the investment empire he built.