Credit Bank has signed a KSh1 billion equity investment with Oikocredit, a move that if approved, will enable Oikocredit to own a minority stake in Credit Bank.
The stake loosely translates to 23 percent.
After Credit Bank launched the Entrepreneurs Hub with an eye on fostering and growing the SME’s that bank with them in July, the additional funding will be used to grow its SME loan portfolio and to further build on the trade finance solutions on offer.
Oikocredit, on the other hand, will use the chance to input social impact and impact measurement into Credit Bank’s lending activities.
Head of Business Banking and Marketing, Pamela Mutembei, said the initiative will see SMEs have a positive growth trajectory.
Last year the lender approved an increase of its share capital from Sh5 billion to Sh7 billion as it sought tier II status and has been seeking capital including through a rights issue of Sh2 billion.
The funding from Oikocredit is the second one for Credit Bank after Africa Development Bank recently approved a debt finance facility to further extend its presence in the SME market.
