The equity agreement between Chase Bank and DEG is aimed at strengthening financial support for SME sector in Kenya, and also realizing its growth and diversification strategies.
Confirming the investment during the signing ceremony, DEG’s Regional Director East Africa, Eric Kaleja said the additional equity injection will support the banks growth plans including a role out and presence in the counties.
The bank currently has 30 branches in major towns.
“Our move to invest in Chase Bank Kenya signifies our confidence in the growth prospects of the Bank not only in Kenya but also in other markets across the African continent,” Kaleja said.
In 2011 DEG issued a long-term debt facility to the bank to streamline its operations as well as realize its growth objectives.
Chase Bank CEO Duncan Kabui said the bank is committed to building its scalability and network so as to enhance financial inclusion and foster economic development in Kenya.
“The bank has made deliberate efforts to ensure that it engages partners whose interests are aligned to the bank’s vision. Some of the strategic investment partners include European investment bank (EIB) and Africa Agriculture and Trade Investment Fund (AATIF) that focuses on its agri-banking unit,” Kabui said.
DEG finances investments of private companies in developing and emerging economies.
To date, DEG has worked together with more than 1,700 companies and contributed to facilitating entrepreneurial investments with a total volume of more than Sh1.5trillion.