Bank floats shares as it seeks sh276.6m from shareholders

Key Microfinance Bank has invited its shareholders to purchase up to 13.8 million ordinary shares at Sh20 each.

This offer is first open to the existing 253 shareholders and any other investor, both local and international. The cash raised will be used to fund growth locally and internationally, Luke Kinoti said on Friday.

He said the microfinance bank which started in Meru as Remu Microfinance and rebranded to Key Microfinance, secured approval from the Central Bank of Kenya (CBK) and the Registrar of Companies to raise cash.

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During the bank’s 8th Annual General Meeting held recently, Mr Kinoti was re-elected Chairman while Daniel Mugao was re-elected a director. Banker Gregory Siro was elected CEO.

Mr Charles Ringera - a director was also approved by the CBK. Other directors are Daniel Kamau, Justus Mutiga, Margaret Gitonga, Ken Mbiuki, and Suzanne Muthaura

According to Kinoti, the bank is giving an opportunity to its shareholders to increase their investment and maintain their existing ownership stake.

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The shares will be issued on a pro-rata basis to all existing shareholders subject to a minimum subscription amount of Sh100,000. The capital call followed the institution’s AGM.

Mr Kinoti said the projected growth in the total assets of the lender is in line with the strategic plan to attain total assets of Sh12 billion by 2022.

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“The offer price per share is Sh20 which translates to a discount of 15 per cent from the current value per share,” he noted.

He said the offer price was determined by the current value per share, legal restrictions on the offer price per share and business performance for the last four years. On Thursday, one of the founders of the bank and owner of Mastermind Tobacco Wilfred Murungi passed on.

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CBKCentral Bank of Kenya