The Competition Authority of Kenya (CAK) has approved the proposed acquisition of control of Gulf African Bank Limited by Dubai-based Soren Investment Company Limited.

The move paves the way for a significant shift in Kenya’s Islamic banking landscape.

According to a gazette notice published on 20th June 2025, the regulator authorized the proposed merger in accordance with Section 46(6) of the Competition Act.

“PURSUANT to the provisions of section 46 (6) of the Competition Act (Cap. 504) of the laws of Kenya, it is notified for general information that in the exercise of the powers conferred upon the Competition Authority of Kenya by section 46 (6) (a) of the Competition Act, the Competition Authority of Kenya has authorized the implementation of the proposed merger as set out herein,” reads the gazette notice.

The approval, dated 16th May 2025, in the notice, was issued by the Authority's Director-General, David Kemei.

The acquisition marks a major milestone for Gulf African Bank, one of Kenya’s foremost Islamic banks, which has been seeking new capital and strategic partnerships to scale up its operations and reach in the region.

Details of the transaction value or shareholding structure were not disclosed in the gazette.

The CAK’s approval comes amid increased merger activity in the Kenyan banking sector, as smaller banks look to consolidate and attract capital.

Gulf African Bank became the first Islamic Bank in Kenya, incorporated on August 9, 2006, and was fully operational on January 8, 2008, as Kenya's first fully fledged commercial banking license from the Central Bank of Kenya as a dedicated Islamic bank.

The bank stated it has played a key role in Kenya’s financial growth.

“Since 2008, we have been an active part of the growth seen in Kenya's financial sector, offering a one-stop financing and business development centre for corporates, small and medium enterprises (SMEs) and retail segments,” reads a statement from the bank’s website.

“We have a strong dedication to accelerating growth in the banking sector that will lead to economic development.”

According to the lender, its institutional investors account for about 90% of the shareholding, with the balance subscribed by prominent Kenyan investors in their individual capacity.