By Benadeta Mwaura - Reporter
Kenya, November, 21 2025 - Sidian’s board has approved a rights issue targeting Sh3 billion, of which Sh2.5 billion has already been raised. The final Sh500 million is expected to be collected soon. The bank says the fresh capital will go toward its medium-term growth strategy (2024–2028): expanding its trade finance business, scaling operations, and shoring up its regulatory capital buffers.
Key Players & Shareholder Shifts
The fundraising has brought existing shareholders into sharper focus. Centum Investment Company, once a dominant owner, has seen its stake diluted over time. According to Centum’s own report, the company raised Sh3.2 billion by partially selling its stake in Sidian Bank.
The decision was influenced by the bank’s substantial capital requirements, which prompted Centum to reduce its exposure while allowing room for other long-term investors to come on board.
Fred Murimi, Managing Director at Centum Capital, explained, “Some minority shareholders did not take up their rights … therefore Centum’s stake increased.” Another notable name is William Byaruhanga, a former Ugandan Attorney General. His firm,Kenbe Investments, acquired a sizable stake in Sidian, significantly reshaping the ownership landscape.
What the Capital Means for Sidian
Regulatory Buffer: The raise gives Sidian breathing room. As regulatory capital requirements tighten, banks need strong capital ratios to remain competitive.
Profit Momentum: The bank has been generating healthy profits. Earlier reports show Sidian’s deposits and revenue have grown significantly, validating management’s confidence ahead of the rights issue.
Growth Ambition: With this capital, Sidian is pushing to become a Tier2 bank, meaning more business, more lending power, and a stronger role in Kenya’s SME and trade finance space.
Risks and Challenges
But the journey isn’t risk-free:
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Completion Risk: If the final tranche of Sh500 million does not materialize, Sidian Bank may face difficulties in fully executing its growth plans.
Dilution Concerns: Centum’s reduced stake raises governance questions, as its diminished influence could alter how decisions are made at the board level.
Execution Risk: As Sidian scales its operations, converting the increased capital into profitable lending, particularly in areas
Why This Matters for Kenya’s Banking Sector
Sidian’s move is part of a broader trend: midtier banks are raising deep capital to compete. If Sidian succeeds:
1. It could emerge as a serious Tier2 contender, taking business away from larger banks.
2. Its success could attract more investment in smaller, more agile banks that serve SMEs.
3. It could reshape how privately owned banks think about capital-raising, ownership restructuring, and long-term growth.
Sidian Bank’s Sh3 billion rights issue isn’t just a capital call; it’s a statement of intent. The bank is betting on growth and relevance, not just survival. But the path forward will test its ability to convert investor optimism into real business traction. For shareholders, customers, and the broader financial ecosystem, the key question is: will that bet pay off?
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