, NAIROBI, Kenya, Dec 16 – Two former Kenya Commercial Bank (KCB) executives have formally taken up a stake in microfinance institution Jamii Bora, after they injected additional capital.
Through Asterix Holdings, Samuel Kimani and Timothy Kibiru will hold a 25 percent stake in Jamii Bora.
The two left KCB mid this year following a restructuring drive at the bank. Kimani had served as Deputy CEO – Group Controls while Kibiru was Director of Retail Banking.
Stakeholders have approved the share sale and structure change due to the acquisition during an Extra-ordinary Annual General Meeting.
“Asterix holdings approached the Jamii Bora Bank board, with a view to buying a stake in the bank. The discussions were concluded a month ago, and we agreed that Asterix Holdings would buy 25 percent shareholding for Sh320 million,” Kimani said.
Kimani added they will also increase the number of directors in the bank.
“We wanted a change in the Memos and Articles of Association to increase the directors of the bank from nine to 11. Both Kibiru and I will sit on that board as Executive Directors. We are then going to have another five directors independent of management and shareholders, and four directors who will be appointed by the shareholders,” he said.
Further, the shareholders approved the establishment of an employee share option plan through the creation of 900,000 new Class A shares, which shall be vested in the newly created Jamii Bora Bank Employee Share Option Plan (ESOP) Trust pending the start of the scheme. The shares in the plan shall comprise ten percent of core capital at all times.
Other resolutions passed included the increase of share capital to 1.77 million shares to accommodate the ESOP and amendment of various articles of association of the company.
Speaking at the meeting, Chairman Richard Njoba said the entry of Asterix Holdings as investors in the bank strengthened the business both in terms of capital and management capability.
“We are delighted with the direction the bank is taking going forward and are confident that the management will turn this bank around over the next 12 months and return incremental profits for shareholders,” added Njoba.
Shareholders include Jamii Bora Trust, Jamii Bora scandanivia, Nordic Microcap and Stromme Foundation.