SMEs-focused lender–Credit Bank has on-boarded Mauritius-based private equity fund Shorecap III, LP as part of its shareholding structure, after a successful acquisition of a 20 per cent stake.
Both the Central Bank of Kenya and Competition Authority approved the deal, allowing Shorecap III, LP to acquire 7,289,928 ordinary shares in Credit Bank, on June 15, 2023.
The bank is linked to the family of the late Simon Nyachae, a Kanu-era powerful minister.
Credit Bank patron and majority shareholder Grace Nyachae has since termed the partnership a great opportunity to leverage their synergies, to build a dynamic lender and project confidence in the market.
“We hope this strategic partnership will deliver the future of Credit Bank to even greater heights and deliver stronger results that will transform our shared future,” she said.
Credit Bank CEO Betty Korir said that the partnership will strengthen the capital ratios and at the same time, improve the bank’s competitiveness in the market as it shall bolster the bank’s ability to serve its customers better.
Shorecap III, LP chief investment officer Suleiman Kigundu said: “Over the years, we have come to appreciate that financial inclusion cannot just be about reach. People have to be empowered and included in the financial system in a meaningful way to succeed and very few institutions are really committed to this.”
He said Credit Bank ticked all the boxes of a partner aligned with the PE fund’s goals.
Credit Bank board chairman Moses Mwendwa noted that Kenya’s banking sector was very competitive and requires lenders to constantly innovate, adapt and expand to remain relevant in the ever-changing market.
“We hope that through our partnership with Shorecap III, we will not only expand our financial muscle to play a bigger role in the industry, but to leverage our synergies to offer our customers optimal service based on a strategy of being digital-first, cost-efficient and product versatility to meet the evolving needs of the market,” Mwendwa said.
He said going forward, Credit Bank would focus on accelerating the growth of its non-funded business to deliver diversified growth, while prudently growing its balance sheet with high-quality loans that will deliver strong growth this year.