Nairobi — Jamii Bora bank shareholders have approved a Rights Issue due in September this year, to raise Sh500 million.
The bank's CEO Sam Kimani says the money is aimed at raising the bank's core capital to Sh1.3 billion by the end of this year.
The current bank's core capital stands at Sh800 million and is below the Sh1 billion required of all banks by Central Bank of Kenya.
"The bank has had two classes of shares. Ordinary shares with a par value of Sh250 and class A shares with a par value of 66 shares. What we want to do is to have one class of shares. That is easier to manage in future. If we want to trade these shares over the counter or if we ever want to list these shares," said Kimani.
In December 2011, the microfinance bank concluded a Rights Issue which raised Sh270 million from existing shareholders to shore up its capital base.
Asterisk Holdings Limited, a strategic investor, injected a further Sh320 million into the business.
The bank also plans to spend Sh300 million in implementing its business strategy over the next four years which will include opening of new branches in Kisumu, Thika, and in Kawangware, Ongata Rongai, Outering, Soweto and Gikomba areas, with the intention of closing the year with a 15 branch network.
In this year's Annual General Meeting, the shareholders also approved the appointment of eight new directors led by James Gacheru as the chairman.
Other members include Betty Gikonyo, Cyprian Wekesa, Richard Kiplagat, Pamela Ager, Allan Mwendar, Sam Kimani (CEO), and Timothy Kabiru.
"We have also tried to bring on to the board, other various skills that we require to thrive this business. We have got people with legal experience on the board, management skills, among others. And really this is to just drive the bank's strategy, "added Kimani.
The bank which currently has 41 outlets made a loss of Sh37 million shillings in 2011 compared to Sh77 million compared to 2010.