Nairobi, May 23 -- Credit Bank, which is linked to the family of late politician Simeon Nyachae, has been cleared by the banking industry regulator to sell a 20 percent stake to a Mauritius-based private equity fund in the latest deals that have seen politicians and investors cash out of struggling lenders.

The Central Bank of Kenya (CBK) said in a Monday notice that the equity fund, Shorecap III, LP will acquire the stake on June 15, 2023, following the approval of the deal on April 24.

The Competition Authority of Kenya had also cleared the deal in November last year.

"CBK welcomes this transaction that will diversify and strengthen the resilience of the Kenyan banking sector," said the regulator in a statement. The CBK did not discl...