Credit Bank PLC has unveiled a recapitalisation plan designed to strengthen its balance sheet, restore regulatory compliance, and set the stage for a potential Nairobi Securities Exchange (NSE) listing within three years.
KES 4.5 Billion Private Placement
At the upcoming Extraordinary General Meeting (EGM) on 19 December 2025, shareholders will vote on a proposal to raise Sh4.5 billion through a private placement of 45 million new ordinary shares at Sh100 each.
The issue will target existing shareholders and qualified investors, with the board empowered to determine pricing, timing, allocation, and issuance terms.
Preference Shares, Asset Swap and Convertible Note
Credit Bank is also seeking approval for additional capital instruments:
- Preference shares: Up to Sh3 billion, offering flexible long‑term capital options.
- Asset‑for‑shares swap: Acquisition of Upper Hill property on Kamburu Road valued at Sh1.2 billion.
- Convertible note: A USD 1.5 million note to ShoreCap II LP, structured as supplementary capital with conversion optionality.
Credit Bank PLC Eldoret Branch PHOTO | KHUSOKO
2024 Financial Performance
Credit Bank’s recapitalisation push follows a challenging financial year:
| Metric | 2023 | 2024 | Change |
|---|---|---|---|
| Net Profit/Loss | Sh32.4m profit | Sh1.05b loss | ▼ |
| Interest Income | Sh3.15b | Sh3.54b | ▲ 12% |
| Forex Income | Sh315m | Sh143m | ▼ 55% |
Balance Sheet Overview
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Total Assets | Sh27.3b | Sh26.5b | ▼ 3% |
| Customer Deposits | Sh18.31b | Sh18.88b | ▲ |
| Net Loan Book | Sh18.96b | Sh17.99b | ▼ |
Regulatory Compliance Shortfalls
As of 31 December 2024, Credit Bank fell below key regulatory thresholds:
| Ratio | Bank Position | Required Minimum | Status |
|---|---|---|---|
| Core capital to deposits | 6.9% | 8.0% | Below |
| Core capital to risk‑weighted assets | 6.2% | 10.5% | Below |
| Total capital to risk‑weighted assets | 8.3% | 14.5% | Below |
| Liquidity ratio | 15.1% | 20% | Below |
Rising Non‑Performing Loans
| Metric | 2023 | 2024 | Change |
|---|---|---|---|
| Gross NPLs | Sh8.88b | Sh12.42b | ▲ Sh3.54b |
| NPL Ratio | 44% | 60% | ▲ |
Capital Mobilisation and NSE Listing
To address these challenges, Credit Bank is engaging shareholders to improve capital ratios and comply with new regulatory requirements. The bank has also announced plans to list its shares on the Unquoted Securities Platform (USP) of the NSE, with a full NSE listing targeted within three years.
The listing is expected to:
- Broaden ownership.
- Enhance transparency.
- Offer retail and institutional investors access to the bank’s growth trajectory.
Strategic Outlook
If approved, the recapitalisation would mark one of the largest capital‑raising efforts by a mid‑tier lender in 2025, positioning Credit Bank to:
- Strengthen its capital base.
- Expand lending and digital capabilities.
- Support product innovation.
- Restore investor confidence.
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