Premier Bank Limited, a Mogadishu-based financial institution headed by Somali businessman Jibril Hassan Mohamed, is on the verge of acquiring a controlling stake in First Community Bank (FCB), the first fully-fledged Shari’ah-compliant bank in Kenya.
To facilitate the acquisition, the lender has secured approval from the Competition Authority of Kenya (CAK) to buy a 62.5-percent stake in FCB, though the deal’s value remains undisclosed.
In order to finalize the deal, Premier Bank must obtain approval from the Central Bank of Kenya (CBK) to acquire FCB and assist the Kenyan Shari’ah-compliant bank, which has experienced a decrease in core capital to Ksh924 million ($7.22 million), falling short of the required minimum of Ksh1 billion ($7.8 million).
Premier Bank’s proposed acquisition is expected to rectify the challenges facing FCB, which has encountered a decline in its total risk-weighted asset ratio to 7.1 percent as opposed to the necessary minimum of 10.5 percent due to a bank run caused by a system malfunction that impacted its operations.
Premier Bank is a privately owned commercial bank that operates in compliance with Sharia law. It was established in Somalia in 2013 and obtained its license from the Central Bank of Somalia in 2014.
The bank is committed to supporting the reconstruction of Somalia and is being led by Mohammed, an experienced businessman with a background in the industry since 2002.
As the chair, Mohammed provides strategic guidance to the board, oversees policies, manages investor relations, and facilitates key partnerships within the bank.
Under the guidance of the Somali businessman, Premier Bank utilizes its extensive knowledge of local financing requirements to meet the demands of Somalia’s ever-evolving economy by bringing modern banking practices to the country.
The bank provides comprehensive one-stop financial solutions to a diverse array of customers, including private and government institutions, corporate and small-to-medium-sized businesses, as well as individual account holders in Somalia.