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Kenya

Extra KCB shares trade at NSE

NAIROBI, August 25 – The 221.78 million new shares of Kenya Commercial Bank on offer during the recent rights issue began trading Monday at Sh28.

This marks a 12 percent increase compared to the share offer of Sh25.

About two weeks ago, the biggest lender by outlets in the East African region announced the results of the second rights issue, which revealed an oversubscription of about 50 percent.

“The additional capital injected into the business has increased our core capital to Sh14.9 billion. Consequently our key capital ratios have been further strengthened giving us capacity to invest more capital in our subsidiaries, expand our infrastructure and increase business volumes,” KCB Chairman Peter Muthoka said.

Speaking at the launch of the rights issue, Muthoka noted that the bank’s total capital risk weighted assets ratio now stood at 17 percent against a Central Bank of Kenya (CBK) minimum of 12 percent.

The core capital to deposits ratio is now at 15 percent against the CBK minimum of 8 percent.

“We will employ this capital prudently and efficiently in an effort to get optimal returns for stakeholders,” he concurred.

Meanwhile, KCB Chief Executive Officer (CEO) Martin Oduor-Otieno announced that the bank would be switching over to its new core banking system, Temenos T24 over the weekend.

“This will be another historic moment for us as our business across the country, will shut down to facilitate the change over and usher a new era where customer service and product innovation will be central to our relationship with our clients,” Oduor emphasised 

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This is second time the lender is selling new shares to its shareholders.

The first rights issue, in 2004, raised Sh2.45 billion.

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