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Kenya: KCB Expansion On Course, Says Chief
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The East African Standard (Nairobi)
23 April 2008
Posted to the web 22 April 2008
James Anyanzwa
Nairobi
The Kenya Commercial Bank (KCB) plans to open more branches in rural areas as part of its regional expansion.
"In line with our growth and expansion agenda we shall continue to open branches in rural areas," Mr Martin Oduor-Otieno, the bank's chief executive officer told The Standard on Monday.
The State-owned bank is on course to raise Sh5 billion in additional capital through a rights issue to fund its growth and expansion drive.
The bank expects to 60 branches in Kenya, Tanzania, Uganda and Southern Sudan this year with plans to move to Rwanda and Burundi shaping up. About 50 per cent of these branches will be local.
"We have plans to consolidate our business in Kenya by further expanding delivery channels with 30 more branches and 50 more ATMs," said Oduor-Otieno.
Adding, "We are also growing our reach across the region with a total of 30 more branches and a commensurate number of ATMs spread across the markets of our operations this year."
He said the rights issue will be opened in the weeks following the banks Annual General Meeting planned for May 9.
He was speaking after he presented the issue's information memorandum to the Nairobi Stock Exchange (NSE) yesterday.
Last week KCB handed over a similar document to the Capital Markets Authority (CMA) ahead of the shareholders' and Central bank's approvals.
"We are on a journey to raise additional capital," said Otieno-Oduor.
KCB has recorded consistent growth in both business volumes and profitability over the past five years leading to growing optimism among its stakeholders as to its future prospects.
The bank saw its annual profits jump from a huge loss of Sh4.1 billion in 2002 to a profit of Sh4.2 billion last year.
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A consortium of Standard Investment Bank and Faida Investment Bank has been appointed transaction advisor to KCB's rights issue, while Walker Kontos are the legal advisors. Ernst and Young will be the issue's reporting accountants.
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