NAIROBI, Kenya, May 22 – Mauritius private equity fund Shorecap has acquired a 20 percent stake in Credit Bank PLC (CBP) after receiving approvals from the Central Bank of Kenya (CBK) effective June 15, 2023.
This follows approval from the CBK on April 24, 2023, under Section 13(4) of the Banking Act, as well as by the National Treasury and Planning Cabinet Secretary on April 28, 2023, pursuant to Section 9(1) of the Banking Act.
CBP was licensed by CBK as a non-banking financial institution in 1986 under the name Credit Kenya Limited.
It converted to a fully-fledged commercial bank in 1995. The bank has 17 branches spread across the country.
The bank specializes in the provision of banking services to small corporations and micro, small, and medium-sized enterprises (MSMEs).
It is categorized as a small bank with a market share of 0.5 percent as of March 31, 2023.
Likewise, Shorecap is a private equity fund registered under the laws of Mauritius, with Equator Capital Partners LLC as the managers of the fund.
It is established by a limited partnership agreement, and its shares are owned by ShoreCap III GP Limited, African Development Bank Group, and CDC Holdings Guernsey Limited.
Others are the European Investment Bank, KfW Development Bank, and Oesterreichische Entwicklungsbank AG (OeEB).
ShoreCap’s business model mainly focuses on investing in inclusive financial services in Asia and Africa.
The ultimate objective of the fund is to expand access to affordable and responsive financial products and services for underserved market segments.
“CBK welcomes this transaction that will diversify and strengthen the resilience of the Kenyan banking sector,” CBK said in a statement.
