, NAIROBI, Kenya, Feb 19 – K-Rep Bank targets to increase its customer base to 1.5 million in the next three years from the current 236,000.
K-Rep Bank Chief Executive says Titus Karanja says this is part of revamping the institution to make it a tier two bank in next three years.
The firm recently got Sh1.2 billion financing from Centum Investments to support its expansion plans.
Among the plans include refurbishment of the branch network and upgrade of the core banking system.
Also in focus will be revitalization of the channel offering through mobile, Internet and agency banking.
The firm is seeking to recruit over 3,000 agents and open five more branches throughout the country.
“We are planning to change the whole brand of the bank as we seek to transform it to a tier two bank, we have even plans to change the name of the bank,” Karanja told Capital FM Business.
The bank’s core capital had now improved from Sh2.6 billion to Sh3.8 billion and is set to close at Sh4.1 billion at the conclusion of the rights issue.
The firm was seeking Sh1.6 billion in the rights issue.
“With the enhanced capital, K-Rep Bank is now set for its growth strategy as we seek to be the robust and innovative financial services to current and future customers,” he added.
Centum Investment acquired an additional 66 percent shareholding in K-Rep Bank Limited from several existing shareholders to bring its total stake in K-rep to 67.54 percent in 2014.
Centum, which has been a minority shareholder in the bank since 2004, stated that the acquisition of the controlling interest in K-Rep is in line with its strategic objective of expanding presence in the financial services sector.
As at March 31st 2014 K-Rep’s total assets stood at Sh14 billion banking about 200,000 retail, small and medium enterprises and micro finance customers through its 36 branches across the country.
According to Centum Investment Director Dr Chris Kirubi, the bank had stagnated for so long and Centum had plans to transform it.