29 February 2012

Kenya: Jamii Bora Plans Another Cash Call in September

NEW local bank Jamii Bora is eyeing another rights issue in September to raise Sh500 million and increase its capital base to Sh1.3 billion to fund the bank's expansion and growth plans.

Jamii Bora bank CEO Sam Kimani announced plans to open a new branch each month this year to meet its target of 12 branches for 2012, as it seeks to grow its network in the market. "We have enough capital to grow which is slightly over Sh800 million and by end year we shall be compliant at Sh1 billion mark," said Kimani yesterday during the opening of the bank's second outlet in Eastleigh area.

Jamii Bora is looking to spend about Sh100 million this year to fund the branch expansion project and recruitment of staff. The bank which started operations under the current management after a merger with City Finance Bank and Jamii Bora Microfinance. It has an estimated 300,000 customers most of whom were previously members of the micro finance institution.

The bank which is still in the set up stage said it will also start offering its customers ATM services through the Kenswitch shared network from next week. Late last year, shareholders of the bank approved a sale of 925,000 ordinary shares and 1,350,000 Class A shares to Asterisk Holdings Ltd where the firm invested Sh320 million in the bank. Jamii Bora Bank also raised an additional Sh270 million through a rights issue last September.

In its four year growth plan, the bank is planning to open a branch in each of the country's 47 counties. On agency banking, Kimani said the bank will start preparations for its roll out in the second half of 2012, after putting in place a core banking system that agents would also need to conduct banking services. The new Eastleigh branch is located close to the Mathare junction where many Jamii Bora members reside.

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