Centum has invested an additional KES 1.2 Billion in K-Rep Bank Limited. Centum Investment Limited group Chief Executive Officer Mr. James Mworia presented the cheque to Mr. Titus Karanja, the K-Rep Bank Limited Chief Executive Officer, on the 12th of October 2015 at K-Rep Centre. The capital investment is in line with Centum’s strategy to increase its presence in the Financial Services sector after raising a KES 6 Billion bond in June 2015, which was partly targeted at increasing its investment in the bank.
The shareholders of K-Rep Bank in July 2015 approved a KES 1.7 Billion capital injection into the Bank through a rights issue which was aimed at increasing the shareholders’ funds by 65% from the current KES 2.6 Billion. This is Centum’s pro rata participation into the rights issue with full participation expected from the other shareholders in the rights issue open period.
The cash injection is expected to increase the bank’s Capitalisation by 54% to KES 3.8 Billion. “We are working together with the K-Rep Group, other shareholders, the Board and Management of K-Rep Bank, to create a robust banking experience and provide efficient and innovative financial services to all of K-Rep’s current and future customers” Mr. Mworia explained. “The additional capital will play a significant role in enhancing customer experience through revitalization of the channel offering through mobile, internet and agency banking, refurbishment and expansion of the branch network and upgrade of the core banking system. Over the next five years we intend to help K-Rep Bank grow into a Tier II bank.”
Mr. Titus Karanja said, “K-Rep Bank is pleased to receive this capital injection which is a clear indication of shareholder commitment to the growth of the Bank. With the injection, K-Rep bank now stands well in excess of the minimum statutory ratios and is well placed to enhance its services to customers.”
Centum increased its shareholding in K-Rep bank to 67.54% in November 2014 through a buyout of other shareholders. K-Rep Bank was licensed in Kenya as full service commercial bank in 1999 by the Central Bank of Kenya. It has since grown and as at June 30th 2015, had total assets of KES 17,209 Million with over 200,000 customers consisting of Micro Finance, Retail and Small & Medium Enterprises served through its 37 branches across the country.
Centum is East Africa's leading quoted investment company, listed on the Nairobi and Uganda securities exchanges respectively. It had over US$ 448M as at 31st March 2015 in investment in the Financial Services, FMCG, Power and Real Estate sectors and plans to expand development activities into the Healthcare, Agribusiness, Education and ICT sectors by 2019. With a vision to be Africa’s foremost investment channel, Centum’s key objective is to consistently generate market beating returns by building extraordinary enterprises in Africa.
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