Centum Investments, the Nairobi Stock Exchange-listed investment company, is injecting an additional $11.7 million into one of its holdings, commercial bank K-Rep, via a pro rata participation in the bank’s current rights issue. Full participation is expected from other shareholders in the $16.8 million rights issue, which was approved in July in order to boost shareholder funds by 65%.
In June Centum issued a $58 million bond, part of the proceeds of which have been used to increase its investment in the bank. The capital will increase the bank’s capitalization by some 54%. James Mworia, Centum’s CEO, presented a cheque for $11.7 million to K-Rep’s CEO Titus Karanja in a ceremony last week.
“We are working together with the K-Rep Group, other shareholders, the Board and Management of K-Rep Bank, to create a robust banking experience and provide efficient and innovative financial services to all of K-Rep’s current and future customers” Mr. Mworia explained. “The additional capital will play a significant role in enhancing customer experience through revitalization of the channel offering through mobile, internet and agency banking, refurbishment and expansion of the branch network and upgrade of the core banking system.”
Centum increased its shareholding in K-Rep to 67.54% in November 2014.