At Credit Bank, we strive to transform the social-economic welfare of our people through innovative financial solutions. It is on this basis that we steer our operations and develop long term relationships that benefit our clientele.
Yesterday, 28th August 2019, we signed a KES 1 Billion equity investment with the Netherlands based social impact investor, Oikocredit Ecumenical Development Cooperative Society U.A. (Oikocredit). The investment, which is subject to Central Bank of Kenya approval, will see Oikocredit take a minority stake in the Bank.
Such a significant investment comes on the back of a formidable strategy deployed to propel the Bank to greater heights. This strategy banks on small and medium sized enterprises (SMEs) that form a significant part of Kenya’s economy. The sector contributes 3% of the country’s GDP and employing well over 30% of Kenya’s labour force. SMEs, however, face financial and structural challenges that have long rendered them unable to access formal credit.
For us, this was an opportunity to realign our strategy to serve this underserved market. The Bank intends to utilize capital injection to further propel our growth strategy that positively impacts the SME sector. The investment will increase our lending capacity and contribute to the creation of sustainable jobs. The lasting social impact on the low-income sections of the society will bring about financial inclusion. This will partly be achieved through broadening and deepening our Trade Finance solutions that have come to benefit entrepreneurs. Facing security challenges, we provide SMEs with structured financial solutions coupled with innovative lending practices that can further be accessed through our digital platform.
Our commitment to SMEs has won us several accolades in the recent past both internationally and locally. CFI.co recognised us as the Best Commercial Bank Governance Team while The European awarded us for being the Best SME Partner Bank. Locally, Think Business has recognised us as the Best Bank in Trade Finance, Bank with the Lowest Charges for the SME Segment, Best Recovery Award and Best Bank in SME Banking. The Kenya Banker’s Association recognised our uncompromising customer experience with the Best Tier III Bank in Customer Service Award. Our sustainable financial practices have not gone unnoticed and they have been awarded by Kenya Association of Manufacturers as the Best Bank in Sustainable Finance.
Today, we welcome Oikocredit both as a shareholder and more importantly, a growth partner aligned to our mission. We anticipate a mutual beneficial relationship that leverages on Oikocredit’s extensive experience in financial services across the globe. Credit Bank’s shareholders approved a rights issue during our Annual General Meeting in June 2019 which is expected to raise an additional KES 2 Billion from shareholders. Onboarding Oikocredit therefore is a steadfast move towards attaining the Bank’s authorised capital of KES 7.5 billion. This will see us attain a Tier II status in the short run.
Oikocredit’s Portfolio Director – Africa, Mr. Robert Kagiri, has expressed the institution’s enthusiasm to make an equity investment in Credit Bank and further share in our mission and vision. Oikocredit will work with the Bank to mainstream social impact and its measurement into its lending activities. A worldwide co-operative, Oikocredit has over 40 years’ experience funding organizations active in financial inclusion, agriculture, and renewable energy.
Oikocredit’s loans, equity investments, and capacity building aim to enable people with low incomes in Africa, Asia, and Latin America to improve their living standards. Oikocredit finances over 700 partners in over 30 countries, with total outstanding capital of € 1 Billion.
Our is pursuit of growth through innovative financial solutions that impact the economy hence making every investor in us a part of our country’s overall success story.