What you need to know:
- Salaam African Bank is a provider of financial products and services mainly in the East African region.
- The takeover will pit Salaam African Bank against a number of Kenyan banks in Uganda.
Djibouti's Salaam African Bank (SAB) has expanded into Uganda and acquired Top Finance Bank Limited.
Bank of Uganda confirmed the move on Monday, saying the approval of this acquisition is in line with the country’s financial laws.
“This is to inform the general public that MA Salaam African Bank (hereafter SAB) with its headquarters in Djibouti has acquired Top Finance Bank Limited (hereafter TFB),” Bank of Uganda announced.
“This transaction was concluded following Bank of Uganda approval ‘in accordance with provisions of the Financial Institutions Act (FIA), 2004 Ms amended) and its implementing Regulations,” it added.
Incorporated in 2007, Salaam African Bank is a provider of financial products and services mainly in the East African region.
Top Finance Bank commenced operations in Kakamega in 2012, while Salaam African Bank also has a presence in Ethiopia and Kenya, through Salaam Microfinance Bank Limited and Salaam Investment Bank Limited which are licensed by the Central Bank of Kenya and Markets Authority of Kenya respectively.
The acquisition of the bank comes amid growing financial distress among financial institutions in Uganda.
The takeover will pit Salaam against a number of Kenyan banks in Uganda, including Kenya Commercial Bank, Equity Bank, and NCBA.