Pioneer Insurance, one of the leading insurance firms in Kenya, has announced a strategic investment in Sidian Bank, a tier-three lender.
In a statement on Wednesday, the insurance firm said the investment reflects the company’s commitment to diversify and strengthen its investment portfolio and generate new business opportunities.
“This will give Pioneer Insurance an opportunity to stay ahead in a dynamic market and deliver value to customers and the expanded clientele,” managing director David Ronoh said.
He added that the investment is in line with the company’s long-term commitment to seek further opportunities that will foster new avenues of collaborative partnership for the benefit of stakeholders.
Ronoh said its entry into the banking sector through the acquisition of stakes at Sidian Bank, is expected to play a major complementary role to the existing products.
“Pioneer Insurance’s decision to invest in the Sidian Bank comes after meticulous research and evaluation of the bank’s performance, stability and growth potential,” he said.
He expressed confidence that the partnership will create synergies and value for both entities and their customers.
Sidian Bank, which was formerly known as K-Rep Bank, is a commercial bank that focuses on small and medium enterprises.
Centum Investment Company PLC bought a controlling stake in Sidian, formerly known as K-Rep Bank, in 2014.
It has 37 branches across the country and offers various products and services, such as loans, deposits, trade finance, agency banking, and mobile banking.
In January, Centum backtracked on a buyout deal with Nigerian lender Access Bank. In the deal, Access Bank Plc was to acquire Centum Investment’s 83.4% stake in Sidian Bank.
Centum owns 83.4% of Sidian’s issued shares directly and through its wholly-owned subsidiary, Bakki Holdco Limited.