British International Investment (BII) has agreed to sell its 10.13 per cent stake in I&M Group to East Africa Growth Holding, an investment vehicle established by Africinvest Fund IV LLC.

The deal, estimated to be at least Sh2.9 billion, marks a significant development in the financial landscape.

The completion of the proposed transaction is subject to regulatory approvals in Kenya and other countries.

I&M Group has issued a statement regarding the proposed transaction, emphasising that the completion of the deal is subject to customary conditions, including regulatory approvals in Kenya and other countries where the company has operating subsidiaries.

“Completion of the proposed transaction is subject to certain conditions that are customary to transactions of this nature, including receipt of all regulatory approvals in Kenya and in other countries where the company has operating subsidiaries,” the I&M statement read.

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BII's investment in I&M Group in 2016 underlined its commitment to supporting lending to small and medium-sized enterprises in East Africa.

The British DFI's decision to sell its stake to a related party, which is an investor in Africinvest Fund IV, reflects the evolving dynamics of the investment landscape, particularly in the African financial sector.

The latest I&M Holdings annual report indicates that BII was the lending group’s fourth largest shareholder after Minard Holdings Limited, Tecoma Limited, and Ziyungi Limited.

This transaction is poised to reshape the ownership structure of I&M Group, signalling potential shifts in the regional financial market.