Mauritian-based firm takes $19 million stake in Suresh Bhagwanji Shah’s I&M Group

Key Points

• EAGH increased its I&M Group stake by 4.44%, investing $19.04 million to become the bank’s fourth-largest shareholder with 249.8 million ordinary shares.
• I&M Group posted a 21.91% profit jump in 2024, driven by MSME lending and digital focus under its growth-focused iMara 3.0 strategy.
• The bank aims to reach 100 branches by 2026, doubling its retail presence in Kenya and solidifying its footprint across East Africa.

East Africa Growth Holding (EAGH), a Mauritius-based investment firm, has increased its stake in I&M Group, a prominent East African financial conglomerate founded by Kenyan banker Suresh Bhagwanji Shah, with an additional investment of more than $19 million. The move strengthens EAGH’s position as the Group’s fourth-largest shareholder, marking a significant investment in the region’s banking landscape.

A recent update revealed that EAGH acquired an extra 4.44 percent stake in I&M Group, valued at Ksh2.46 billion ($19.04 million). This raises its total stake from 10.7 percent to 15.14 percent. With this latest transaction, EAGH’s stake in I&M Group now translates to 249,810,000 ordinary shares and worth Ksh8.39 billion ($64.91 million)—cementing its influence as a top financial institution in the region’s competitive banking industry.

I&M strengthens leadership

I&M Group, ranked among the 20 most valuable stocks on the Nairobi Stock Exchange, has been expanding its operations into key economic zones, aiming to reach 100 branches by 2025 as part of its iMara 3.0 strategy. The company’s financial performance remains strong, with a 21.91 percent profit increase in its 2024 fiscal year to Ksh15.38 billion ($119.04 million).

Growth was driven by increased operating income and strategic focus on MSME lending and digital transformation. This steady expansion likely reinforced EAGH’s confidence in I&M’s long-term value and strategic importance in East Africa’s finance sector.

With this latest investment, EAGH, a special purpose vehicle backed by global impact investors, builds on earlier acquisition of 86.5 million shares valued at Ksh4.2 billion ($32.4 million) in October 2024.

I&M gains confidence with EAGH’s move

Founded in 1974 by Suresh Bhagwanji Shah and listed on the Nairobi Stock Exchange, I&M Group has grown into a major banking force in East Africa, operating in Kenya, Tanzania, and Rwanda, with a joint venture in Mauritius. The bank is expanding further into key economic hubs, using innovation to strengthen its position and reshape Kenya’s financial sector.

Shah, who played a key role in shaping I&M into a top-performing financial group, holds a 10.98 percent stake in the lender—equivalent to 178.5 million shares. Outside banking, he has built additional wealth through MTZ Holdings, a majority-owned entity that supports I&M’s expansion and efforts to improve financial access across the region.

Through its iMara 3.0 initiative, the bank aims to double its retail presence in Kenya, expanding its branch network to 100 by 2026 from the current 50. The plan involves opening at least 17 branches annually to bolster its presence in the competitive East African banking sector.