Kenya’s Competition Authority has approved the takeover of Gulf African Bank Limited by Soren Investment Company Limited, a firm based in Dubai.
The deal, which was proposed on May 16, 2025, was cleared in a gazette notice published on Friday.
“Pursuant to the provisions of section 46 (6) of the Competition Act (Cap. 504) of the laws of Kenya, it is notified for general information that in the exercise of the powers conferred upon the Competition Authority of Kenya by section 46 (6) (a) of the Competition Act, the Competition Authority of Kenya has authorized the implementation of the proposed merger as set out herein,” the notice read.
The approval was granted by David Kemei, Director General of the Competition Authority of Kenya.
Gulf African Bank, established in 2005 and operational since 2008, is Kenya’s leading Islamic bank. Its total assets grew by 6.6% to $347.3 million in December 2024, nearly matching the combined asset size of Dubai Islamic Bank and Premier Bank, and firmly establishing it as Kenya’s largest Islamic lender by assets
It offers a full suite of Shariah-compliant financial products and services, which are structured to avoid interest in line with Islamic law.
The bank finances individuals and businesses, with a focus on supporting SMEs through tailored lending and development services.
According to the latest supervision report, the bank’s core capital stands at $52.6 million—more than double the $23.2 million target the industry is expected to meet by the end of 2025.
Before the takeover, over 90% of Islamic lenders’ shares were held by institutional investors.
These included Istithmar PJS of the United Arab Emirates (UAE), with a 32% stake, and the International Finance Corporation, which acquired a 16% stake in 2012 for $5 million.
The remaining shares were held by individual investors from the Gulf, Kenya, and the United States.
The incoming owner, Soren Investment Company, was incorporated in the UAE in 2019 and is headquartered at the Dubai International Financial Centre. Public information on the firm is limited, but it primarily engages in holding and managing investments across agriculture, commerce, and industry.
The Gulf African Bank deal is the latest in a string of mergers and acquisitions in Kenya’s banking sector.
Earlier in March, Access Bank Plc — the Kenyan subsidiary of Nigeria’s Access Holdings — completed its acquisition of the National Bank of Kenya, following regulatory approval from the Central Bank of Kenya.
To strengthen its position in the Kenyan market, Access Holdings later injected $116,121 into Access Bank Plc to boost its capital base.
Analysts viewed the capital injection as critical after the bank reported a 347.5% jump in full-year losses, rising to $1.9 million in 2024 from $491,377 the previous year.
With approvals secured, the acquisition of Gulf African Bank marks another chapter in the ongoing consolidation of Kenya’s financial sector.
The financial figures were originally reported in Kenyan shillings and have been converted at an exchange rate of KSh 129.2 to $1, as of June 23, 2025.
