This archive report was first published on 29 August 2019.
On Thursday, Credit Bank signed a Ksh 1 billion equity investment deal with Oikocredit, a social impact investor. The investment, subject to regulatory approvals, will see Oikocredit take a minority stake in Credit Bank.
Published on August 29, 2019, the deal aims to support Credit Bank's growth in its SME loan portfolio and trade finance solutions. As an investor, Oikocredit will work with Credit Bank to mainstream social impact and impact measurement into the bank's lending activities.
Speaking at the signing ceremony in Nairobi, Moses Mwendwa, Credit Bank's Acting Chairman, welcomed Oikocredit as a shareholder, citing their extensive international investing experience and emphasis on social impact.
“We look forward to a mutually beneficial relationship,” Mwendwa said.
With this investment, Credit Bank is expected to raise an additional Ksh 2 billion from shareholders through a rights issue approved at its Annual General Meeting in June 2019. The move is a step towards attaining Credit Bank's authorised capital of Ksh 7.5 billion, which should see the bank attain Tier II status.
Robert Kagiri, Oikocredit's Portfolio Director – Africa, expressed his organisation's pleasure in making the equity investment. “Credit Bank is a good fit for our organisation's mission because of its strong commitment to its SME customers and to financial inclusion,” Kagiri said.
“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,” added Kagiri.
