This archive report was first published on 22 July 2019.
On July 22, 2019, Consolidated Bank of Kenya announced that it had extended the maturity of its Sh2 billion medium-term note by three months. This move was made to allow the government, its biggest shareholder, to inject more capital into the bank.
The seven-year bond, which was issued to shore up the bank's capital and enable it to lend more to its customers, was originally due to mature on July 22. However, under the new terms, it will now mature on October 22, with additional interest payments for the extension.
According to Consolidated Bank, the extension is necessary to allow the National Treasury to finalize the process of capital injection into the bank. The bank, which is 85.8% owned by the government, was formed in 1989 when the state merged nine troubled financial firms.
Efforts to privatize Consolidated Bank, along with other government-owned enterprises, have been delayed for over a decade due to red tape and the state of its books.
