Kenya Commercial Bank Limited (IFC-36791)

Regions
  • Africa
Where the impacts of the investment may be experienced.
Countries
  • Kenya
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 22, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
KCB Group Limited
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 145.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 17, 2018

Disclosed by Bank Nov 28, 2016


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Project Description

According to IFC website, this project with KCB Group Limited is aligned to IFC’s strategy for the African financial sector. It is comprised of a $75 million loan facility to KCB to be on lent as Tier II qualifying subordinated debt. This investment is part of a US$250 million capital raising exercise by KCB to strengthen the Bank’s capital position in the context of the increased regulatory capital buffer requirements while supporting the bank as it expands into the SME segment and invests in alternative delivery channels to deepen financial inclusion. Further, the project is expected to have a high development impact in the following areas:

i. Increasing access to finance and financial inclusion in existing markets and potentially into new markets in the East Africa region.
ii. Supporting the development of financial markets by working with a regional banking group to develop very important products (housing, gender and MSME finance) that can materially contribute to economic growth.
iii. Fostering sustainable financing through the E&S support that IFC continues to provide to KCB to become a leading champion and catalyst of sustainability in the financial system in the East Africa region.

Investment Description
  • International Finance Corporation (IFC)

Loan - US$ 75.0 million

Equity - US$ 70.0

Private Actors

KCB was founded as the National Bank of India in 1896 with a branch in Mombasa. In 1970, the GoK acquired 100% of the Bank to take full control of the largest commercial bank in Kenya and renamed it Kenya Commercial Bank. Between 1997 and 2014 the bank opened subsidiaries in Tanzania, South Sudan, Uganda, Rwanda and Burundi and launched KCB Capital and KCB Insurance companies. It launched digital financial services (“DFS”), numerous payment and alternative banking solutions and is the market leader in mobile banking today with over 10 million customers – thus making significant strides in expanding financial inclusion.

In January 2016, KCB created a holding company structure for regulatory and strategic reasons. KCB Group Limited was registered as a non-operating holding company regulated by the Central Bank of Kenya. The holding company oversees KCB Bank Kenya and all KCB’s regional banking units in Uganda, Tanzania, Rwanda, Burundi, Ethiopia and South Sudan. It also owns KCB Insurance Agency, KCB Capital, KCB Foundation and all associate companies. KCB is public company listed on the Nairobi Securities Exchange, being its largest shareholders the Government of Kenya which holds 17.53%, followed by the National Social Security Fund with 6.05% (as at October 2016)

Contact Information

David Kitheka
Head, Investor Relations, KCB Group Limited
Office Address: Head office, Kencom House P. O. Box 48400 – 00100, Nairobi, Kenya.
Contact No.: (254) 20 3270000; (254) 20 3270629
Email Address: dkitheka@kcb.co.ke

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/