Mauritian lender SBM Holdings will be forced to limit dividend payouts to shareholders to maintain current cash buffers following the takeover of bottom-tier Fidelity Bank Kenya, research economists at Moody’s have said.
The Mauritian second largest bank acquired the lender for Sh100 and rebranded it to SBM Kenya in May, a transaction Moody’s says cut its capital cushion against unexpected operational shocks by 3.7 percentage points.
