A subsidiary of Cititrust Holdings Plc, CFS Asset Management Limited, has been granted operating license by the Kenyan Government to operate in the East African country as a funds manager.
This was disclosed in a statement issued by the Lagos-based company on Monday, November 9, 2020.
According to the company’s Chairman, Michael Monari, the Kenya’s Capital Markets Authority had sent a letter of the regulatory approval.
The letter read in parts;
“We are pleased to advise that the Authority has approved the grant of license to CFS Asset Management Limited to operate as a Fund Manager.
“Your attention is drawn to the requirements for Fund Managers as provided in the Capital Markets Act (Cap 485A laws of Kenya) and the Regulations and Guidelines issued thereunder. Please ensure full compliance.”
In the meantime, the CEO of the asset management firm, Mr. Femi Alli, said the management is optimistic of the opportunities presented by the Kenyan market.
He also assured investors in the East African country of “great values and superior returns on their investments” should they rely on CFS Asset Management Ltd to manage their assets.”
Group CEO of Cititrust Holdings Plc, which is the parent company of CFS Asset Management Ltd, Yemi Adefisan, said, “This development also marks another milestone in the quest by Cititrust Group to become a key driver in wealth creation and value-driven asset management in the Continent.”
CFS Asset Management Ltd is the latest Nigerian company to expand into the East African market. Recently, there has been a growing list of Nigerian companies expanding across Africa as part of strategic efforts to diversify their portfolios and position themselves as Pan-African entities.
It should be recalled that earlier this year, tier-1 Nigerian bank, Access Bank Plc, also expanded to Kenya, after completing the acquisition of Kenya’s Transnational Bank Plc – a medium-sized commercial bank.
Other Nigerian-owned companies operating in Kenya include the likes of BetKing, United Bank for Africa, Guaranty Trust Bank Plc, Dangote Cement plc, etc.
CFS Asset Management Ltd has now joined the growing list of Nigerian companies in Kenya as part of “our determination to become a dominant force in the African financial and investment landscape,” according to the company’s CEO.
Although CFS Asset Management Ltd is a subsidiary of Cititrust Holdings Plc, which is a leading financial services group in Nigeria, it needs to do a lot more in order to navigate the Kenyan market. This is because the Kenyan asset management market is dominated by major players such as Alpha Africa Asset Managers, Amana Capital Limited, CIC Asset Managers Limited, etc.