This archive report was first published on 29 August 2019.
On August 29, 2019, Credit Bank announced a Sh1 billion equity investment deal with Oikocredit, a social impact investor from the Netherlands. The investment is subject to regulatory approvals and values Credit Bank at over Sh4 billion.
As part of the deal, Credit Bank intends to use the funding to grow its SMEs loan portfolio and further develop its trade finance solutions. Oikocredit aims to work with Credit Bank to mainstream social impact and impact measurement into the bank's lending activities.
Speaking at the signing ceremony, Credit Bank's Acting Chairman Moses Mwendwa welcomed Oikocredit as a shareholder, highlighting the bank's commitment to SMEs and financial inclusion. 'Credit Bank's shareholders approved a rights issue at its Annual General Meeting in June 2019, which is expected to raise an additional Sh2 billion from shareholders,' Mwendwa said.
Robert Kagiri, Portfolio Director Africa at Oikocredit, noted that Credit Bank was a right fit for the investment due to its commitment to SMEs and overall financial inclusion. 'By enabling Credit Bank to expand its lending activities to SMEs, we're helping Credit Bank support the creation of sustainable jobs. We look forward to working with Credit Bank towards lasting social impact for people on low-incomes in Kenya,' Kagiri said.
