Sidian Bank has taken decisive steps to strengthen its balance sheet, approving a KSh3 billion rights issue that has already raised KSh2.5 billion.
The final KSh500 million is expected soon, providing the lender with fresh capital to drive its medium-term growth strategy for 2024–2028. Management says the funds will be channelled into expanding trade finance, scaling operations, and reinforcing regulatory capital buffers.
Centum Investment Company, once a dominant owner, has steadily diluted its stake, raising KSh3.2 billion by partially selling Sidian shares. Fred Murimi, Managing Director at Centum Capital, explained that some minority shareholders did not take up their rights, which in turn increased Centum’s relative stake.
Meanwhile, Kenbe Investments, led by former Ugandan Attorney General William Byaruhanga, acquired a sizable position, significantly altering the ownership landscape and signalling confidence in Sidian’s future.
Profit Momentum Strengthens the Case
Sidian’s confidence in raising capital is underpinned by strong financial results. In Q3 2025, the bank reported a profit after tax of KES 1.4 billion, a 445% surge compared to KES 257 million in the same quarter last year. The turnaround was driven by a 141.7% rise in non‑interest income to KES 2.9 billion and a 130.8% increase in income from government securities to KES 3 billion. Total income climbed to KES 9 billion, up 52.5% year‑on‑year.
Earlier in the year, Sidian nearly doubled its half‑year profit to KSh 1.01 billion, reflecting strong growth across core income streams, strategic cost management, and the expanding footprint of its Trade Finance division.
Net interest income rose 42.8% to KSh 1.63 billion, while non‑interest income jumped 136.6% to KSh 1.92 billion. Loan loss provisions dropped by 35.1%, easing pressure on the bottom line, even as operating expenses climbed due to staffing, compliance, and digital investments.
Trade Finance: Sidian’s Flagship Growth Engine
Since launching its Trade Finance division in 2017, Sidian Bank has positioned TF as its flagship solution and strategic growth engine. Today, it stands out as a leading provider of bespoke trade finance solutions for businesses across Kenya and the East African region.
“We have perfected Trade Finance by offering innovative, tailor‑made solutions to business players cutting across different sectors,” says Beatrice Kamiri, Head of Trade Finance at Sidian Bank. “Our mission is to empower businesses to create wealth through transformational financial solutions that meet their needs and facilitate growth through convenience and choice.”
Sidian’s competitive edge lies in agility, speed of execution, and deep relationship management. Its end‑to‑end digital platform, Sidian Credible, has revolutionised access to bid securities, guarantees, and other trade instruments.
Regional Integration and SME Empowerment
Sidian Bank is aligning its trade finance strategy with emerging regional trade corridors, including the African Continental Free Trade Area (AfCFTA) and East African intra‑trade dynamics.
“We support cross‑border trade by enabling customers to access tender securities for regional construction projects, especially in the energy sector,” Kamiri notes.
Trade finance has also become a powerful tool for SME acquisition and retention. Sidian reduces perceived risks for SMEs entering new markets while deepening wallet share among existing clients. Its offerings include financial advisory on secure payment methods, digital onboarding via Sidian Credible, value‑chain financing tailored to sector needs, and bundled services such as FX, working capital, and guarantees.
