I&M Bank Limited has launched a public offer of fixed-rate Medium-Term Notes, targeting KSh 10.00 Bn in its first tranche under a KSh 20.00 Bn programme, as Kenya's corporate bond market records its busiest run ever on the back of falling interest rates and strong investor demand.
- •The notes, priced at 12.20% per annum with semi-annual payments, carry a 5.5-year tenor and will be listed on the Nairobi Securities Exchange Main Fixed Income Securities Market Segment.
- •A 30% greenshoe option of up to KSh 3.00 Bn is available should demand exceed the base target.
- •The bank, which carries a national long-term rating of A+ by Fitch,reported 29% growth in profit before tax, a 23% rise in operating income, customer deposits of KSh 349.00 Bn, and net loans of KSh 218.00 Bn in 2025.
"The proceeds are intended to support lending, enhance funding resilience and strengthen our capital position in line with our strategic priorities," I&M Bank Group Regional CEO Kihara Maina said.
Proceeds will fund onward lending, long-term growth, and Tier II capital strengthening, the bank said. The notes are unsecured subordinated obligations, ranking pari passu with other subordinated creditors and below depositors and general creditors.
The offer arrives at a moment of unusual activity in Kenya's debt capital markets. The Central Bank of Kenya has cut its benchmark rate ten times since August 2024, reducing it by a cumulative 425 basis points to 8.75%, compressing funding costs and drawing a queue of issuers to market. Average commercial bank lending rates stood at 14.78% in February 2026, while deposit rates averaged 7.00%, creating a yield window that has made corporate paper attractive to institutional and retail investors alike.
EABL opened the current cycle in November 2025, raising KSh 16.76 Bn against an KSh 11.00 Bn target, a 152% oversubscription, on five-year notes priced at 11.80%. Safaricom followed with Kenya's largest-ever corporate bond programme, a KSh 40.00 Bn MTN whose inaugural KSh 15.00 Bn green tranche was listed on the NSE in December 2025 at a tax-exempt rate of 10.40%.
Kenya Mortgage Refinance Company opened its own KSh 3.00 Bn sustainability note on 28 April 2026, one day before I&M Bank's offer.
I&M Bank's 12.20% coupon sits above the prevailing 10-year government benchmark yield of roughly 12.70-13.00%, offering a credit spread consistent with its subordinated status. The minimum subscription is KSh 500,000, targeting primarily institutional and high-net-worth investors. The offer opened 30 April 2026 and closes 15 May 2026, with listing set for 21 May 2026.
Standard Investment Bank is lead arranger and placing agent. The Co-operative Bank of Kenya is receiving bank, with Walker Kontos Advocates as legal advisor and KPMG Kenya as reporting accountants.
