Kenya Commercial Bank Limited (IFC-36791)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Kenya
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 22, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
KCB Group Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 145.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Campaign Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 17, 2018

Disclosed by Bank Nov 28, 2016

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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
Here you can find a list of individual development financial institutions that finance the project.

Loan - US$ 75.0 million

Equity - US$ 70.0

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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/

How it works

How it works