By The Weekly Vision Reporter
In less than three years, Sidian Bank has transformed itself from a struggling Tier 3 lender into a Tier 2 institution with one of the fastest growth trajectories in Kenya’s banking sector. Its net profit increased more than sixfold in 2025, customer deposits have nearly tripled since 2023, and it has attracted a growing number of public sector clients, including the National Social Security Fund (NSSF) and Nairobi County’s public health facilities.
That remarkable growth has also placed the bank at the centre of political debate, with allegations and speculation focusing on whether its expanding public-sector business is linked to those claims. The controversy gained momentum in January 2025 when former Deputy President Rigathi Gachagua, during a televised interview on KTN News, alleged that a senior figure in President William Ruto’s administration had acquired a bank, and that billions of shillings from the Affordable Housing Levy and the Social Health Insurance Fund (SHIF) were allegedly being channelled through it.
Mr Gachagua did not identify the institution. However, his reference to a bank acquired after the current administration took office prompted widespread public speculation, with much of the attention focused on Sidian Bank following significant changes in its ownership structure and rapid deposit growth during the same period.
No public authority has formally linked Sidian Bank to Mr Gachagua’s allegations, and no findings of wrongdoing have been made against the bank.
Sidian’s ownership has changed substantially since late 2023. Centum Investment Company, which had controlled the bank through its subsidiary Bakki Holdco since 2015, began exiting its investment after a proposed KSh4.3 billion sale to Access Bank of Nigeria collapsed in January 2023. The company subsequently disposed of its shares through several transactions before completing its final exit in March 2026, ending a 22-year investment.
The bank’s largest shareholder is now Wizpro Enterprises Limited, which owns 24.95 per cent and is wholly owned by Solomon Muriithi Maina, the immediate former chairman of KTDA Management Services Limited. Afram Limited holds 24.36 per cent, while Pioneer General Insurance Limited, whose shareholders include several UAE-registered firms, owns another significant stake.
Former Ugandan Attorney General William Byaruhanga acquired a 14.63 per cent stake through Kenbe Investments in September 2025. The board was also reconstituted in October 2025, with former Cabinet Secretary James Macharia appointed chairman.
The bank’s public sector profile has grown significantly over the past two years. For the financial year ended June 2024, NSSF placed KSh800 million in fixed deposits with Sidian Bank, representing the fund’s largest fixed deposit placement with any single bank during that year. The allocation came as NSSF reduced its overall fixed deposit portfolio from KSh10.8 billion to KSh2.6 billion.
In August 2025, the Central Bank of Kenya (CBK) approved Sidian as one of six commercial banks authorised to receive Social Health Authority (SHA) remittances alongside KCB, Co-operative Bank, Equity Bank, Absa Bank Kenya and Diamond Trust Bank.
Sidian has consistently maintained that its role is limited to collecting employer contributions and remitting them to SHA accounts. The bank has stated publicly that it does not hold, manage or exercise control over SHA funds.
The distinction between acting as a collection agent and managing public funds has featured prominently in the bank’s response to public speculation. In November 2025, Nairobi County also directed its public health facilities to transfer their banking services from Co-operative Bank to Sidian Bank.
Appearing before the Senate Committee on Devolution and Intergovernmental Relations, Governor Johnson Sakaja said the decision was based on commercial considerations.
He told senators that Sidian had offered more favourable interest rates and better banking terms after a competitive evaluation involving several banks. Addressing questions about ownership, he said that what mattered was the quality of service provided and maintained that the county had acted within the law.
By March 2026, Nairobi County Assembly had approved a KSh1.7 billion monthly payroll overdraft facility with Sidian Bank to help bridge short-term cash-flow constraints. Separately, a court petition was filed seeking to stop a payroll support services agreement between the county and the bank, citing concerns over public participation. The matter remains before the courts.
Sidian’s financial performance has reinforced interest in the bank’s rapid expansion. For the year ended 31 December 2025, net profit after tax rose to KSh1.73 billion from KSh287 million the previous year. Total assets increased by 50.8 per cent to KSh90.8 billion, while customer deposits grew by 62.9 per cent to KSh72.3 billion.
In September 2025, the CBK reclassified Sidian from a Tier 3 to a Tier 2 bank after its market share exceeded one per cent for the first time.
The bank’s rapid growth prompted the Consumer Federation of Kenya (Cofek) to petition the CBK for a forensic audit. Cofek Secretary General Stephen Mutoro called on the regulator to establish whether the allocation of public sector deposits complied with Kenya’s public finance management laws.
Sidian declined to comment directly on Cofek’s petition. A person familiar with the bank’s position, who was not authorised to speak publicly, described the allegations as unfounded and politically motivated but did not provide further details. To date, neither the CBK nor any other state agency has publicly announced findings that Sidian Bank improperly received or managed public funds.
As public debate continues, the bank has maintained a consistent position: it acts only as an authorised collection and remittance agent for SHA contributions, does not manage SHA funds, and has not publicly responded in detail to broader political allegations beyond its official statements on its banking role.
