Premier Bank’s acquisition of Kenyan bank a ‘significant achievement,’ Central Bank says

GOOBJOOG NEWS|MOGADISHU: Central Bank of Somalia has welcomed the acquisition of Kenyan bank by Premier Bank in a first by a Somali commercial bank as the banking centre in the Horn of Africa nation gains a foothold.

CBS said in a tweet the acquisition of First Community Bank by Premier Bank Limited Somalia (PBLS) was a ‘significant achievement that demonstrates the growth and innovation of our banking industry.’

The Central Bank of Kenya announced on Friday the take after the Sharia-compliant suffered near collapse last year following mass withdrawals by clients amid reports of instability. PBLS acquired 62% of FCB making it the majority stakeholder.

CBK said the transaction followed the approval by the Cabinet Secretary for Finance on 13 March in line with the Banking Act. Noting that PBLS was the first Somali bank to establish a majority-owned banking subsidiary in Kenya, the CBK said the acquisition will ‘strengthen trade and investment between Somalia and Kenya.

Premier Bank was established in 2014 and has 20 branches across Somalia and 80 ATMs. It also commands 16% of the banking sector in Somalia.