Credit Bank shareholders will on Friday, 19th December 2025, vote on a package of capital raising resolutions that the lender says will strengthen its balance sheet and align the institution with the Central Bank of Kenya’s tighter core capital regime.
The Bank is seeking approval to raise up to Sh4.5 billion through a private placement of up to 45 million ordinary shares at Sh100 each, targeting existing shareholders and qualified investors. The proceeds will be applied towards improving capital, giving the lender additional headroom as the regulator phases in higher minimum core capital thresholds across the industry.
In the same meeting, shareholders will consider the creation of preference shares of up to Sh3 billion, a step that expands the Bank’s options for attracting long-term capital with flexible terms to be set by the board, subject to regulatory approvals.
Credit Bank has also proposed an asset-share swap involving land parcels in Upper Hill valued at up to Sh1.2 billion, to be acquired in exchange for up to 12 million ordinary shares. The move, backed by a May 2025 valuation, is designed to further strengthen the Bank’s capital and asset base.
In addition, the lender wants authority to issue a $1.5 million convertible note to ShoreCap III LP with a tenure of not less than five years and a 6 per cent annual coupon, qualifying it as supplementary capital. The note can be converted into ordinary shares under clearly defined pricing safeguards.
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Beyond the numbers, the December 19 EGM is being positioned as a confidence vote in governance. The package is structured to ensure shareholder oversight on the recapitalisation roadmap, with a virtual format that allows investors to participate, ask questions and vote on each proposal.
The recapitalisation programme is also expected to come with governance enhancements tied to investor entry. These include protections for minority shareholders and a strengthened board framework, signalling a broader intention to align capital growth with safeguards on governance standards.
The Bank’s approach mirrors what many mid-sized lenders are doing: raising capital early from different sources and keeping shareholders informed as regulators tighten the rules.
