By The Weekly Vision Reporter
Credit Bank has turned to its shareholders to help raise fresh capital as it seeks to remain afloat amid stringent regulatory requirements that compel all lenders to hold a minimum core capital of KSh10 billion by December 2029.
The bank is required to have raised its core capital by the end of this year, prompting the Nyachae family–majority-owned lender to call an Extraordinary General Meeting (EGM) on 19 December. At the meeting, shareholders will be asked to approve the issuance of 45 million new ordinary shares to both existing shareholders and qualified investors. If approved, the move is expected to raise KSh4.5 billion, exceeding the regulator’s threshold.
To further stabilise the institution, whose viability has quietly been questioned in recent times, the bank will also seek approval to issue preference shares worth KSh3 billion, float a US$1.5 million convertible note to private equity firm ShareCap II LP, which acquired a 20 per cent stake in the bank in 2023, and undertake an asset-for-shares swap.
The asset-for-shares transaction involves land worth KSh1.2 billion on Kamburu Road in Upper Hill, owned by Shangrillas Villas, in exchange for ordinary shares valued at KSh100 each, estimated to amount to 12 million shares. All components of the transaction remain subject to regulatory approval.
Credit Bank posted an after-tax loss of KSh195.4 million in the third quarter of 2025, a 43 per cent increase from the same period last year. The decline was primarily driven by a 44.7 per cent drop in non-interest income and a 36.6 per cent surge in gross non-performing loans (NPLs), which offset a 31.5 per cent rise in net interest income and strong deposit growth.
Data shows that the family of the late Cabinet Minister Simeon Nyachae remains the lender’s largest shareholder, with its Sansora Group holding approximately 27.1 per cent of the shares as of 2023.
Following Sansora and ShareCap II, Sanama Investment ranks third with a 14.34 per cent stake, followed by Ketan Morjaria at 9.88 per cent and Jay Karia with 8.61 per cent.
