Former Ugandan Attorney-General Buys Sh1.03 Billion Stakes in Sidian Bank

William Byaruhanga, Uganda’s former attorney-general, has made a significant move into Kenya’s financial sector by acquiring a substantial 14.63 percent stake in Sidian Bank worth Sh1.03 billion, positioning himself as the fourth-largest shareholder in one of Kenya’s fastest-growing banks.

The transaction, completed through his investment firm Kenbe Investments, involved purchasing half of Bakki Holdings Company from Centum Investments.

This strategic acquisition gives Byaruhanga direct control over a significant portion of Sidian Bank, which has emerged as a standout performer in Kenya’s competitive banking landscape.

Byaruhanga, who served as Uganda’s attorney-general from 2016 to 2021, brings considerable business acumen to his new role.

The wealthy lawyer has built an extensive business empire spanning real estate, hospitality, and manufacturing sectors.

His portfolio includes prime properties across Kampala, a hotel business, a sugar company, and interests in the prominent Kampala law firm Kasirye, Byaruhanga and Company Advocates.

The timing of Byaruhanga’s investment reflects Sidian Bank’s remarkable financial trajectory.

The bank reported exceptional growth in its half-year results, with net profit surging 4.5 times to Sh1 billion for the six months ended June 2025, compared to Sh221 million in the same period the previous year.

This performance made Sidian the fastest-growing bank among Kenya’s 38 licensed financial institutions.

The bank’s growth strategy has been particularly focused on government securities, with deposits increasing by 70.8 percent to Sh59.8 billion while lending rose 4.8 percent to Sh26.9 billion.

Sidian’s portfolio of Treasury bills and bonds tripled to Sh39.3 billion, generating earnings of Sh1.8 billion from government securities, up from Sh875 million previously.

Byaruhanga’s entry into Sidian comes amid significant ownership restructuring at the bank. Centum Investments has been gradually reducing its stake through staggered sales after abandoning a 2023 deal that would have seen Nigeria’s Access Bank acquire an 83.4 percent shareholding for Sh4.3 billion.

Instead, Centum has been divesting portions of its holdings to various investment vehicles, bringing in new strategic investors.

The current ownership structure shows Bakki Holdings Company, now jointly controlled by Centum and Byaruhanga, holding 27.27 percent of Sidian Bank. Other major shareholders include Wizpro Enterprises with 24.95 percent, Afram Limited with 24.36 percent, and Pioneer General Insurance with 16.89 percent.

However, Sidian faces regulatory challenges that may require additional capital injection.

The Central Bank of Kenya has flagged the bank for having inadequate core capital adequacy ratios, with stress tests revealing potential vulnerability to loan defaults.

This regulatory pressure suggests that Byaruhanga and other shareholders may need to provide additional funding to strengthen the bank’s capital base.

The acquisition also highlights the growing cross-border investment trends in East Africa’s financial sector.

Byaruhanga’s investment represents a significant vote of confidence in Kenya’s banking sector from a prominent Ugandan businessman with close ties to President Yoweri Museveni’s administration.

For Sidian Bank, Byaruhanga’s entry brings not only substantial capital but also potential access to Ugandan markets and networks.

His extensive business connections and regulatory experience could prove valuable as the bank continues its expansion strategy and works to address regulatory requirements.

As Sidian Bank navigates its growth trajectory and regulatory challenges, Byaruhanga’s involvement as a major shareholder will likely influence the bank’s strategic direction and regional expansion plans.​​​​​​​​​​​​​​​​