Centum Investment Company Plc has completed the sale of its remaining 50% stake in Bakki Holdco Limited, drawing a definitive line under a banking investment that spanned more than two decades, multiple failed transactions, and a hard-won exit strategy.
Bakki Holdco was the holding vehicle through which Centum maintained a 27.2% indirect interest in Sidian Bank. With regulatory approvals secured from both the Central Bank of Kenya and the Competition Authority of Kenya, Bakki will cease to be a Centum subsidiary. The buyer has not been disclosed, though Centum expects to book a modest gain above the KSh 1.0 billion carrying value it assigned to the stake in early 2025.
The transaction represents Centum’s complete exit from Sidian Bank and advances the group’s broader portfolio restructuring programme aimed at strengthening liquidity.
Group Chief Executive Officer James Mworia, CFA, CGMA, framed the disposal in explicitly forward-looking terms. In a public announcement signed on 12 March 2026, he described the exit as “an important milestone in Centum’s portfolio management strategy, aimed at strengthening the Group’s liquidity position and reallocating capital toward new growth investment opportunities.
“The financial effects will reflect in Centum’s results for the year ending 31 March 2026, with the company expecting “a modest financial gain relative to the previously reported carrying value of Bakki Holdco Limited in Centum’s books.”
How a 1.66% Foothold Became a 22-Year Saga
Centum’s relationship with Sidian Bank, then known as K-Rep Microfinance Bank, began in 2004 with the acquisition of a 1.66% minority stake. Four years later, that position edged up to 3.8%. The real pivot came in November 2014, when Centum seized majority control, absorbed K-Rep as a subsidiary, and lifted its stake to approximately 74%.
The years that followed brought significant capital commitments. In 2015, Centum injected KSh 1.2 billion to recapitalise the bank and launched a bancassurance subsidiary. The following year, K-Rep shed its identity entirely, rebranding as Sidian Bank on 4 April 2016 at a cost of KSh 500 milliona. Centum’s combined holding nudged up to 74.8%.
Between 2019 and 2021, Centum and its Bakki vehicle participated in successive rights issues and acquired Ambassador Bethuel Kiplagat’s shares, pushing the combined stake to 83.41%. Sidian posted a record profit of KSh 486 million in 2021, offering a brief moment of validation for the investment thesis.
The Access Bank Deal That Wasn’t
In June 2022, Centum announced an agreement to sell its entire 83.43% stake to Nigeria’s Access Bank for KSh 4.3 billion, a figure that fell short of the estimated KSh 4.7 billion Centum had put into the bank over the years. The deal, however, never closed.
After the long-stop date passed in December 2022 and a deadline extension to 9 January 2023 failed to salvage the transaction, the share purchase agreement lapsed. The collapse had immediate consequences: Sidian was forced to pay KSh 444 million to Danish development finance institution IFU, triggered by a conversion clause tied to the failed sale.
A Methodical Wind-Down
With a clean exit no longer possible, Centum shifted to a piecemeal disposal strategy. In October 2023, the Central Bank approved the sale of a 38.91% direct stake to Pioneer General Insurance, Wizpro Enterprises, and Afram Limited, generating approximately KSh 1.98 billion and reducing Centum’s holding to 44.52%. Sidian was formally deconsolidated from Centum’s books.
Further stake sales in late 2023 brought in roughly KSh 228 million, trimming the position to 40.03%. In early 2024, K-Rep Group and nine founding shareholders exited the bank. Centum sold an additional 5.93%, receiving approximately KSh 322.6 million, while Bakki’s holding fell to 34.1%.
May 2024 marked the start of the Bakki-level disposals, when the Central Bank approved the sale of 50% of Bakki Holdco to Kenbe Investments — a vehicle linked to Ugandan businessman William Byaruhanga — for KSh 1.032 billion. Shareholders approved a further 18.91% stake reduction at the September 2024 AGM.
A KSh 1.9 billion rights issue completed by Sidian in December 2024 diluted Bakki’s position to 29.26% after Centum and Byaruhanga both declined to participate. Afram’s James Maina Muthoni, meanwhile, emerged as a significant shareholder with a 21.4% stake.
Sidian’s Trajectory as Centum Exits
Sidian Bank’s financial position strengthened considerably as Centum wound down its involvement. By March 2025, total assets stood at KSh 68.1 billion. By September 2025, the Central Bank had reclassified Sidian as a medium-sized bank. Assets reached KSh 94.8 billion, deposits KSh 78.1 billion, and nine-month profit after tax KSh 1.4 billion.
