Kenya’s I&M Holdings said on Monday it planned to buy a locally-owned Giro Commercial Bank for an undisclosed amount.
I&M Holdings, which has stakes in banks in Kenya, Tanzania, Rwanda and Mauritius, plans to merge Giro with its subsidiary I&M Bank, it said in a statement.
The transaction is subject to approval from the central bank, the Capital Markets Authority and the Competition Authority of Kenya, and Giro’s shareholders, it said.
At the end of the first half of 2015, I&M Holdings had assets worth 189.3 billion shillings ($1.79 billion), while Giro Commercial Bank had assets worth 16.21 billion.
The government sought to encourage mergers in the sector by calling for an increase in the minimum core capital for commercial banks. But parliament rejected that proposal last month, saying it would hurt the banking industry’s growth.