Inside the Sidian Shake-Up: What William Byaruhanga’s Entry Means for Centum and Other Shareholders

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William Byaruhanga acquisition in Sidian Bank has shifted the lender’s ownership structure after the former Ugandan Attorney General bought a 14.63% stake valued at Sh1.03 billion.

The deal was executed through his investment firm, Kenbe Investments, which purchased half of Bakki Holdings, the vehicle Centum Investments used to hold its Sidian shares. The split leaves Byaruhanga as the Sidian Bank fourth-largest shareholder, while Centum holds the remaining 14.63% through Bakki.

Founded in 1984 as K-Rep Bank to serve micro-enterprises, Sidian bank rebranded in 2016 after Centum gained majority control. Centum, listed on the Nairobi Securities Exchange and previously chaired by the late tycoon Chris Kirubi, invested Sh1.2 billion to strengthen the lender.

Under its watch, Sidian’s balance sheet grew from Sh19 billion in 2012 to more than Sh43 billion by 2022. However, tighter regulation, unmet capital requirements, and failed merger talks have since forced changes in ownership.

For Byaruhanga, 65, the purchase adds a banking stake to his diversified portfolio. A lawyer by profession, he headed Kasirye, Byaruhanga & Co. Advocates before serving as Uganda’s Attorney General from 2016 to 2021.

Beyond law and politics, he has interests in real estate, hospitality, and agribusiness, and has sat on Centum’s board since 2016. When indirect family holdings are considered, William Byaruhanga shares in Sidian Bank rise above 16%, giving his household notable influence among Sidian Bank shareholders.

Centum’s decision to cede part of its position follows a winding exit strategy. Initially, Centum agreed to sell its 83.4% stake to Nigeria’s Access Bank for Sh4.3 billion, aiming to merge Sidian with Access Bank Kenya.

But the deal collapsed in January 2023 after missed deadlines and failed renegotiations, forcing Sidian to pay Sh444 million in termination costs.

Centum then shifted to phased disposals: in October 2023, it sold 64% to a UAE-Kenyan consortium, including Pioneer General Insurance, Wizpro Enterprises, and Afram Limited, for Sh3.2 billion, a 59% premium to book value. The K-Rep Group, Sidian’s founding investors, exited at the same time, receiving Sh842 million for their 16%.

Further fundraising reshaped ownership. A Sh1.9 billion rights issue in 2024, which Centum did not join, diluted its shareholding to 29.26%. The William Byaruhanga stocks in Sidian Bank purchase, approved by regulators in May 2025, cut Centum’s effective stake to below 10%.

Its current holding is valued at about Sh1 billion, up from Sh900 million a year earlier due to book value appreciation.

Other shareholders have also adjusted their positions. The consortium led by Pioneer General Insurance, with Wizpro at 24.2% and Afram (controlled by James Maina Muthoni) at 21.4%, now dominates with nearly 46% of Sidian.

Foreign investors like Abcon International, based in the UAE, and institutional lenders such as the Danish IFU, which extended Sidian a Sh1.2 billion loan in 2019 with a potential 20% equity conversion, have expanded their influence.

Their participation in capital raises has strengthened the bank’s buffers while diluting non-participating investors like Centum and Byaruhanga.

Sidian still faces challenges. The Central Bank of Kenya’s Q1 2025 stress tests put its core capital adequacy ratio at 12.4%, only slightly above the 10.5% minimum. By June 2025, the regulator projected that 11 banks, including Sidian, would require Sh14.7 billion collectively to meet the new Sh3 billion minimum core capital threshold.

Under severe scenarios, non-performing loans could surge by 27.4% to 21.2%, breaching adequacy ratios for six banks and requiring a Sh5.1 billion injection.

The CBK has also flagged rising risks around credit quality and cybersecurity, pressing lenders to strengthen their Internal Capital Adequacy Assessment Processes (ICAAP).

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.