By Jackson Okoth
Nairobi, Kenya: Ecobank Kenya has received a Sh2.1 billion ($25 million) capital injection from its parent company and majority shareholder Ecobank Transnational Incorporated (ETI). This is the second cash support to Ecobank Kenya by ETI after a similar one was done in May, last year. After acquisition of East African Building Society (EABS), Ecobank has been cleaning its balance sheet to clear all non-performing loans. While delays within the court system have frustrated its efforts to recover some of the outstanding debts, financial support from the parent firm has kept Ecobank Kenya on the financial radar.
The bank has also had to deal with legacy issues and the reputation risks West African banks face in Kenya’s increasing competitive financial markets.
“The steady capital flow from the parent company indicate the immense confidence and emphasis placed on the Kenyan subsidiary,” said Ecobank Managing Director, Tony Okpanachi. The cash injection will be used by the bank to spruce up its huge investments in the new branches, deployment of more ATMs, recruitment of new staff, and roll out of retail and corporate internet banking platforms among others. The prevailing high interest rate regime, which played out for the most part of last year, put a strain on Ecobank Kenya’s performance and its resources. But things are looking up and the bank is on a strong growth path.
