Credit Bank shareholders are set for a pivotal vote on Friday, 19th December 2025, as the lender tables a far-reaching recapitalisation package designed to fortify its balance sheet and keep pace with the Central Bank of Kenya’s tougher core-capital requirements.
At the heart of the proposals is a plan to raise up to Sh4.5 billion through a private placement of 45 million ordinary shares priced at Sh100 each. The offer—open to existing shareholders and select qualified investors—is expected to give the bank fresh capital headroom as the regulator phases in stricter minimum thresholds across the banking sector.
But that is only one pillar of a wider capital strategy. Shareholders will also consider establishing up to Sh3 billion in preference shares, giving the bank additional flexibility to attract long-term institutional investors under terms set by the board and subject to regulatory clearance.
In a bid to reinforce both capital and asset quality, Credit Bank is seeking approval for an asset-share swap involving prime Upper Hill land worth up to Sh1.2 billion. The parcels, backed by a May 2025 valuation, would be acquired in exchange for up to 12 million ordinary shares, further shoring up the lender’s asset base.
The agenda also includes a proposed $1.5 million convertible note to ShoreCap III LP, featuring a minimum five-year tenure and a 6 percent annual coupon. Classified as supplementary capital, the note can be converted into ordinary shares under predefined pricing protections—adding yet another layer to the bank’s capital-raising mix.
Beyond the numbers, the December 19 EGM is being framed as a test of shareholder confidence and governance. The virtual meeting format will enable investors to interrogate the proposals, vote on each item, and maintain oversight of the recapitalisation roadmap. New investor inflows are also expected to trigger governance enhancements, including stronger board structures and safeguards for minority shareholders.
Credit Bank’s multi-pronged approach reflects a broader trend among mid-tier lenders: preparing early, diversifying capital sources, and keeping shareholders closely engaged as regulatory expectations tighten.
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