On Thursday the 29th Of August 2019, Credit Bank signed a 1 billion Kenyan Shillings equity investment with social impact investor; Oikocredit.
The investment, which is also subject to regulatory approvals, will see Oikocredit own a minority stake in Credit Bank.
Credit Bank intends to use the equity investment from Oikocredit, to expand its Small to Medium Enterprise (SME) loan portfolio and to also further build on the trade finance solutions which it already offers.
Oikocredit on the other hand will as an investor, work with Credit Bank to input social impact and impact measurement into Credit Bank’s lending activities.
The Acting Chairman of Credit Bank; Moses Mwendwa who spoke at the signing ceremony held in Nairobi, stated that, “We welcome Oikocredit as a shareholder with extensive international investing experience and an emphasis on social impact. We look forward to a mutually beneficial relationship.”
The acting chairman stated that Credit Bank’s shareholders approved a rights issue at its Annual General Meeting in June 2019, which is expected to raise an additional 2 billion Kenyan Shillings from shareholders.
The Portfolio Director at Oikocredit Africa; Robert Kagiri made it known that, “Oikocredit is very pleased to be making this 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.”
Mr. Robert Kagiri added that, “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.”
In July 2019, Credit Bank launched the Entrepreneurs Hub which aims at growing and fostering the Small to Medium Enterprise (SME)’s base in the bank.
The lender also continues to pursue strategic partners in order to achieve more growth.
