Credit Bank is gearing up for a decisive shift in its growth trajectory as shareholders prepare for an Extraordinary General Meeting (EGM) on December 19, 2025—an event expected to anchor the lender’s transition from compliance-focused recapitalisation to a long-term expansion strategy that could see the bank listed on the Nairobi Securities Exchange (NSE) within the next three years.
At the centre of the EGM is a multi-pronged capital-raising plan, beginning with a proposed private placement of up to 45 million ordinary shares at Sh100 per share, targeting a capital injection of Sh4.5 billion. The fresh equity is expected to reinforce the bank’s capital base and position Credit Bank to meet the Central Bank of Kenya’s strengthened minimum core capital requirements.
To diversify funding sources, the board is also seeking shareholder approval to create up to Sh3 billion in preference shares, with terms to be determined subject to regulatory clearance. This instrument would allow the bank to attract long-term capital while easing pressure on ordinary share issuance.
In addition, the EGM will vote on a proposal to acquire land parcels in Upper Hill valued at up to Sh1.2 billion through an asset-for-shares swap, a transaction aimed at strengthening the bank’s asset position. The agenda also includes the issuance of a $1.5 million convertible note to ShoreCap III LP—structured to qualify as supplementary capital and offering conversion flexibility under protected pricing conditions.
Taken together, these measures point to a recapitalisation roadmap designed not only to satisfy regulatory thresholds but also to support Credit Bank’s ambitions in lending growth, digital innovation and product expansion. The blended approach—combining equity, preference shares, asset upgrades and supplementary capital—signals a shift toward a more resilient, growth-ready balance sheet.
As part of the investment terms tied to the recapitalisation, Credit Bank has committed to pursuing an NSE listing within the next three years. The expected listing is projected to widen ownership, enhance governance transparency and open avenues for both retail and institutional investors to participate in the bank’s future growth.
In the immediate term, the December 19 shareholder vote represents a critical foundation for this broader transformation. Its outcome will determine the bank’s ability to mobilise the required funding within a structured and transparent timeline.
If approved, the resolutions would place Credit Bank among a select group of Kenyan lenders proactively aligning capital strategy with strengthened governance and improved market visibility—an approach expected to appeal to investors seeking regulatory stability and long-term value in a rapidly evolving banking landscape.
