Credit Bank, which is linked to the family of late politician Simeon Nyachae, has disclosed fresh plans to list its shares on the less active Unquoted Securities Platform (USP) at the Nairobi Securities Exchange (NSE).
The bank’s board of directors will be asking shareholders to approve the listing, which is expected to help the cash strapped lender raise additional capital in order to comply with minimum regulatory requirements.
The bank had in 2023 made known plans to list at the NSE main segment with the aim of raising Sh1 billion but the plans went cold.
Listing on the USP allows trading of the bank’s shares in an open process leading to price discovery. The listing also opens the door for raising additional capital through private placement which allows for issuance of shares to raise new capital.
“Pursuant to the shareholders’ resolution passed at the Annual General Meeting of the company held on June 23, 2023 authorising the company to demutualise its shares, the company be authorised to apply for the admission and listing of its ordinary shares on the USP of the NSE,” said Credit Bank in a public notice.
The bank needs to raise at least Sh1.7 billion from its shareholders by the end of year, in order to be compliant to the new core capital requirement that comes to effect on December 31, 2025.
At the end of March 2025, Credit Bank had core capital of Sh1.3 billion which was lower than the new requirement of Sh3 billion.
The bank’s capital ratios were also below the minimum statutory ratios as at the end of March putting pressure on it to raise additional capital.
Its ratio of core capital to total deposits was 7 percent compared to the statutory 8 percent, while its total capital to total risk weighted assets was 7.6 percent against a mandatory 14.5 percent. Credit Bank is also facing a cash crunch with its liquidity ratio at 15.5 percent which is lower than the minimum required of 20 percent.
The tight cash position saw the lender post a loss after tax of Sh1 billion for the year ended December 2024. It bounced to profitability in the first quarter of 2025 when it posted an after tax profit of Sh58 million.
Other companies listed on the USP are Acorn Holdings Real Estate Investment Trust (Reit) both Development and Investment Reit, and Linzi Sukuk issued last year.
