Hisham Ezz Al-Arab, CEO, Commercial International Bank, Egypt /HANDOUTHisham Ezz Al-Arab, the CEO of CIB Bank, the largest bank in Egypt, embarked on a remarkable journey that began with a tuk-tuk ride through the bustling streets of Nairobi.
This seemingly ordinary experience would soon catalyze a significant chapter in his career and the expansion of one of Egypt’s largest banks on the continent into the heart of East Africa.
CIB Bank, which is listed on the London and New York stock markets, boasts a commanding presence in Egypt, serving millions of clients and facilitating substantial trade and investment.
With a market capitalization that places it among the top banks in the region, CIB was positioned for growth beyond its borders. Yet, it was Hisham's personal exploration of Kenya that ignited the spark for this ambition.
Initially visiting Nairobi for leisure, Hisham found himself captivated by the vibrant culture and the potential he saw in the local banking landscape.
Accompanied by a young employee, they decided to embrace the city’s charm by taking a tuk-tuk ride.
The ride was filled with laughter and local anecdotes, as their jovial driver introduced them to Nairobi’s culinary delights, including fresh avocado and tomato dishes from Eastleigh, a neighborhood known for its Somali influence.
Reflecting on the experience, Hisham recalled, “I came back to Egypt and told my people, ‘You will love it there.’”
The warmth of the people and the familiarity of the culture resonated deeply with him, reminding him of the dry and dusty yet buzzing Cairo.
This trip changed his perspective on banking and economic potential in East Africa’s largest economy.
The decision to acquire Mayfair Bank, which was partially owned by politician Peter Kenneth, was not made lightly.
Hisham’s passion for Africa was evident, and he recognized the strategic importance of Kenya as a gateway to the East African market.
With CIB already having established a representative office in Addis Ababa, Ethiopia, the choice between Kenya and Rwanda for further expansion was clear.
“Kenya offers a larger population, a shared English language, and a well-educated workforce,” he explained.
Upon his return to Egypt, Hisham was brimming with ideas. He envisioned CIB not only as a financial entity but as a catalyst for change in Kenya’s banking sector.
Engaging with the local business community, many of whom were unaware of CIB’s significant stature, he emphasized the need for a new
approach to lending.
“We want to create a new legacy by moving to cash flow lending,” he said.
This innovative approach, according to the CEO, would enable CIB to serve a broader range of businesses, particularly those with promising cash flows but insufficient assets for collateral.
Hisham is determined to bring a new credit culture to Kenya, where banks have traditionally relied on physical assets for loan approvals.
He envisions a financial ecosystem in which businesses could thrive based on their operational success and future potential.
This vision was not just about expanding CIB’s footprint, but about transforming how banking could support economic growth in the region.
During his stay in Nairobi in 2018, Hisham and his colleague were invited to a private party at their hotel, filled with the city’s elite.
With a spontaneous decision to join, they changed into their best attire and mingled with top business figures, including tea exporters to Egypt.
These interactions further fueled his excitement about Kenya’s economic potential and the possibilities for CIB’s involvement.
“CIB will use Kenya as a launchpad for expansion into the region,” Hisham asserted, outlining plans to facilitate trade across borders.
He envisioned breaking down silos to enable smoother business operations in Tanzania, Rwanda, and beyond.
“Our goal is to become a tier-two bank within five years, with ambitions to elevate to tier one. However, it’s not just about profit; leaving a legacy is what drives us,” he stated in an interview in his Cairo office.
The bank’s growth strategy includes increasing its branch network throughout Kenya, coupled with the deployment of digital banking products.
Hisham recognized Kenya’s technological advancements and expressed confidence in the established infrastructure and educated workforce to support CIB’s growth.
Investing heavily in blockchain technology, CIB aims to enhance security and efficiency in transactions.
“Digital identities are becoming critical in banking,” he warned, emphasizing the importance of knowing your customer.
“Have you seen a hacker asking for ransom while providing their bank account?” This insight underscores Hisham's commitment to innovation and security as essential components of modern banking.
