Shareholders approve plan by bank to raise capital

Kenya: Shareholders of the proposed Fountain Microfinance Bank which was given a provisional approval by the Central Bank (CBK) in July, voted to raise the bank's authorised share capital from Sh120 million to Sh600 million.They also voted to change the company name from Fountain DTM Limited to Fountain Microfinance Bank in accordance with recommendations from CBK.

Addressing shareholders at an Annual General Meeting  held at CITAM Parklands, the Chairman, Erastus Mwongera said 2014 marked a turning point for the company, which is part of the Fountain Enterprise Programme (FEP) Group.

"We have prayed for this moment to come and now it's here. I want to thank the Central Bank for giving our application a favourable consideration," said Eng Mwongera, whose voice was drowned out by shouts and ululations from the visibly happy shareholders.

He added: "Now the hard work of setting up the bank starts with earnest at this general meeting. We have increased our authorised share capital and it means that we will be coming to you as shareholders to raise the additional capital to help operationalise our bank and make it strong."

The shareholders also approved appointment of independent directors subject to the approval of the CBK. These were Susan Omanga, a former Board member of the KCB Group, Damaris Gitonga, formerly a senior executive with the National Bank of Kenya, G. P. O. Onyango, a former executive with Barclays Bank and Jones Makau Nzomo, a former Human Resources director at CBK.