Centum Books Sh301M Shortfall in Sidian Bank Exit

Centum Investment Company has completed its exit from Sidian Bank, closing a 25-year ownership run with total proceeds falling Sh301 million short of the Sh4.77 billion the investment firm originally put into the lender.

The Nairobi bourse-listed firm sold its remaining 14.63% stake in Sidian in March, a transaction it has now disclosed was valued at Sh1.2 billion. That sale brings cumulative proceeds from a series of disposals since 2024 to Sh4.469 billion. Measured against the historical cost of the investment, Centum recovered about 93.7% of what it originally committed, before accounting for any dividends received over the holding period.

Why the Exit Fell Short

Centum received limited dividends from Sidian over the years. The bank had to retain capital to support its operations and carried out several rights issues to strengthen its balance sheet, cutting into the cash Centum could pull out along the way.

Sidian was also one of the few investments in Centum's portfolio whose historical cost exceeded its market value. The lender was hit hard by interest rate controls and the Covid-19 pandemic, years that strained its capital position even as Centum kept injecting funds to keep it afloat. Sidian's profitability has since surged following Centum's exit.

The proceeds from the final disposal helped Centum declare a special dividend of Sh0.36 per share, worth Sh240 million in total, on top of an ordinary dividend of Sh0.42 per share worth Sh281 million.

A Long History Dating to 2001

Centum first invested in the lender in 2001, when it operated as K-Rep Bank. In November 2014, the firm acquired a 66% shareholding, lifting its total stake to 67.54%. Later transactions pushed that stake as high as 83.43%.

An earlier agreement to sell the bank to Nigeria's Access Bank fell through, forcing Centum into a piecemeal sale of shares to multiple buyers instead. Buyers of Centum's shares, mostly held through an investment vehicle called Bakki Holdco Limited, include Pioneer General Insurance Limited, Wizpro Enterprises Limited and Afram Limited.

The Sh1.2 billion transaction saw Centum sell its 14.63% Bakki stake to an undisclosed buyer. Bakki now holds 27.27% of Sidian, alongside Wizpro Enterprises Limited (24.95%), Afram Limited (24.36%), Pioneer General Insurance (16.89%), Telesec Africa Limited (3.47%) and Pioneer Life Investments (3.06%).

Part of a Wider Portfolio Reshuffle

The Sidian exit fits into a broader pattern at Centum, which has accelerated the disposal of mature investments in recent years to free up capital for new opportunities. Other strategic exits include Nabo Capital, Almasi Beverages and Nairobi Bottlers, even as the firm has grown its exposure to real estate through subsidiary Centum Re. The move comes at a time when African startups have raised $2.10 billion through the first eight months of 2026, underscoring how capital is being recycled and redirected across the continent's investment landscape as legacy holdings like Sidian change hands.

The exit also comes as Centum enters a new leadership phase. James Mworia, who served as chief executive for nearly 18 years, departed the firm this week to become founding CEO of the National Infrastructure Fund. Centum's board has credited Mworia with growing the firm's asset base from Sh4 billion in December 2008, when the company was operating on a Sh200 million overdraft, to about Sh46 billion currently.