Home Business Remu rebrands amid plan to raise Sh0.5 billion capital

Remu rebrands amid plan to raise Sh0.5 billion capital

by kenya-tribune


Remu rebrands amid plan to raise Sh0.5 billion capital

L-R: Kenya Banker’s Association CEO Habil Olaka, Key Microfinance Bank Chairman Luke Kinoti and Key Microfinance Bank acting chief executive Gregory Siro during the rebranding of Remu Microfinance Bank to Key Microfinance Bank at the Sarova Panafric Hotel on February 4, 2019. PHOTO | DIANA NGILA 

Key Microfinance Bank, formerly known as Remu, plans to raise Sh500 million in fresh capital over the next five years to fund expansion.

Acting chief executive Gregory Siro said Monday that the capital will be raised from its shareholders who include private equity and fund management firm Fusion Capital that holds a 25 percent stake in the microlender.

“The rebrand will not only unlock the bank’s potential, but will also enable it reach out to more customers countrywide… The move will also enable the bank to roll out a more diversified product mix to its target market,” said Mr Siro said during the official rebrand ceremony in Nairobi. The micro-financier says it is eyeing strategic partnerships to grow its assets base to Sh1.2 billion by 2021.

The bank will target SMEs in trade, transport, agribusssiness, technology, manufacturing and service sectors with attractive products to grow its income.

Key Microfinance chairman Luke Kinoti said the lender was considering listing on the Nairobi Securities Exchange (NSE) but did not provide timelines.

First licenced as a deposit-taking microfinance in 2011, Key Microfinance Bank has branches in Nairobi, Meru and Maua. It targets small and medium sized enterprises and individuals.

There are 13 registered microfinance banks.

Regulated by CBK, they are are seen as an attractive area of investment having been excluded from the rate capping regime implemented since late 2016.

However, commercial banks remain dominant lenders. Kenya’s 13 deposit-taking microfinance banks recently sank deeper into losses as depositors flocked to larger lenders.

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