KEY POINTS
- The capital plan supports the bank’s SME and digital-banking growth under the capital-raising plan.
- Credit Bank seeks to complete a Nairobi land acquisition through new shares under the capital-raising plan.
- Shareholders will vote on several funding proposals that reinforce the capital-raising plan.
Credit Bank, a Nairobi lender tied to one of Kenya’s wealthiest business families, is moving to secure fresh shareholder backing for a $35 million capital-raising plan. The bank, controlled by the family of the late politician and businessman Simeon Nyachae, is looking to reinforce its capital base as it expands digital products and increases lending to small and medium-sized firms that depend on mid-tier banks for credit.
Capital-raising plan proposals
The bank will present the proposals at an extraordinary general meeting scheduled for Dec. 19, 2025. Investors are set to review a mix of funding measures. These include a private placement of as many as 45 million shares priced at Ksh100 ($0.77) each. The board will also seek approval for preference shares, a land-for-shares swap valued at Ksh1.2 billion ($9.3 million), and a $1.5 million convertible note for ShoreCap III LP.
ShoreCap entered Credit Bank in mid-2023 with a 20 percent stake, making it a key development-finance partner. Its backing has added weight to the bank’s corporate governance and long-term expansion aims. One of the more significant items going before shareholders is the planned purchase of land in Nairobi’s Upper Hill. According to Bilionaire Africa, the bank plans to acquire a parcel on Kiambere Road by issuing 12 million new shares to Shangrilas Villas Co. Ltd.
If approved, the land deal would sit alongside the wider capital measures to support digital-banking growth and an expanded SME loan book. The bank has also adopted online and USSD voting options, a shift that mirrors Kenya’s steady move toward digital corporate governance.
Family-led lender target growth
Credit Bank, founded in 1986, maintains deep ties to the Nyachae family. Grace Nyachae, widow of Simeon Nyachae, remains a director. The family retains a strong ownership position, keeping its influence central to the bank’s direction.
Should shareholders endorse the proposals, Credit Bank would secure one of the largest capital boosts among Kenya’s mid-tier lenders in recent years. The new funding would reinforce Tier II and core capital as regulators push Basel III standards and tighter provisioning rules, pressure points that have increased demands on smaller institutions.
