East Africa Growth Holding (EAGH), a Mauritius-based investment business, plans to buy 86.5 million new shares in I&M Group, a major East African financial conglomerate founded by Kenyan banker Suresh Bhagwanji Shah. The transaction, worth Ksh4.2 billion ($32.4 million), represents a substantial shift in the region’s financial environment.
According to a statement issued on I&M Group’s website, the acquisition will increase EAGH’s interest to 4.97 percent of its expanded share capital. EAGH’s purchase price of Ksh48.42 ($0.37) per share demonstrates its belief in I&M’s growth prospects. The group informed shareholders that additional information will be provided once the transaction was completed.
In March 2024, EAGH acquired a 10.13 percent share in I&M Group. That transaction, worth KSh6.5 billion ($50.3 million), involved purchasing shares from British International Investment (BII), a UK-based development finance company.
With that initial share, EAGH gained indirect joint control of I&M Group, which included a seat on the board and a say in strategic decisions. The current transaction is subject to regulatory and shareholder approval, as well as other standard closing conditions.
Suresh Bhagwanji Shah, a Kenyan entrepreneur, created I&M Group in 1974. The company operates banks in Kenya, Tanzania, and Rwanda, as well as a joint venture in Mauritius. Shah, who owns 10.58 percent of I&M, was instrumental in converting the company into a regional banking leader.
Beyond finance, I&M has expanded into manufacturing. Kim-Fay, a hygiene product maker, will benefit from a new facility in Tatu City’s Special Economic Zone in Nairobi, thanks to a recent partnership with Norfund.
I&M is likewise pursuing an ambitious retail banking growth strategy. The bank’s iMara 3.0 program seeks to quadruple its retail footprint in Kenya to 100 branches by 2026, up from the present 50. The goal entails opening at least 17 branches per year to increase its footprint in the competitive East African banking sector.