I&M Bank Group, a prominent financial services conglomerate founded by Kenyan businessman Suresh Bhagwanji Shah, has made a substantial investment in its Ugandan subsidiary, I&M Uganda.
The move aims to solidify the bank’s operations in the East African markets and comply with revised minimum capital requirements set by the Bank of Uganda.
The banking group, led by Shah, directly invested Ksh538.89 million ($3.88 million) in I&M Uganda, in addition to a further Ksh282.4 million ($2.03 million) through the conversion of preference shares, bringing the total investment for the fiscal year 2022 to Ksh821.26 million ($5.92 million).
The revised minimum capital requirements imposed by the Bank of Uganda prompted I&M Bank Group to bolster its capital levels. By December last year, banks were required to have a minimum paid-up cash capital of Ush120 billion ($864.4 million), with a further increase to Ush150 billion ($1.08 billion) by the end of June this year.
The recent investment follows a staggering Ksh995.84 million ($7.2 million) injected by the group into its Ugandan unit in the previous year when the minimum capital requirements were revised. Such consistent investments highlight I&M Bank Group’s commitment to meeting regulatory standards and strengthening its presence in the Ugandan market.
I&M Bank Group, headquartered in Kenya, serves as the non-operating holding company for I&M Bank Limited. It operates as a leading financial services provider in Kenya, Tanzania, Rwanda, and Mauritius through a joint venture.
The conglomerate has been expanding its operations across East Africa since its establishment in 1974 by Shah.
With a beneficial stake of 10.98 percent, Shah has played a pivotal role in transforming I&M Bank Group into one of East Africa’s most prominent banking groups. His ownership of 178,514,362 ordinary shares further solidifies his position as a major stakeholder in the company.
In addition to I&M Bank Group’s financial endeavors, Shah also owns a majority stake in MTZ Holdings, a newly formed entity that recently acquired Nairobi Business Park, a grade “A” office complex on Nairobi’s Ngong Road, from NBP Holdings Limited.
