Jamii Bora sells 15pc stake for Sh600m in capital raising drive

Jamii Bora sells 15pc stake for Sh600m in capital raising drive

Small and medium enterprise lender Jamii Bora has received Sh600 million from US based Equator Capital Partners to shore up its capital reserves.

This as small lenders look to strategic partners to inject capital as the Central Bank of Kenya moves to strengthen the banking sector.

With the capital injection, Equator Capital will take up a 15 percent stake in the bank, making it the second largest shareholder.

Jamii Bora Chief Executive Officer Sam Kimani said the bank’s total capital now stands at Sh3.7billion, placing the Bank among top 20 highly capitalized banks in the country.

“We are excited to have Equator Capital Partners as a strategic partner and significant shareholder of the bank. Their investment in JBBL is a testament to our sound strategy, stable financial position and commitment to creating tangible impact and enhancing banking value offered to SMEs across Kenya,” Mr Kimani said.

Equator Capital Partners is a private equity fund management which invests in inclusive financial services entities in developing and transitional economies, with the intent of adding development impact for the Funds it manages.

Jamii Bora had announced plans to merge with a local bank but has instead opted to brining on board of strategic partner.

The bank had earlier in the year announced plans to raise Sh3.8 billion in new capital to boost its ability to lend.

“It is a transitional period for the Kenyan banking industry. We believe Jamii Bora Bank’s strategic focus as an SME lender strongly resonates with our investment approach to deliver inclusive financial services that promote sustainable economic, social and environmental development through private sector investments,” Africa Investments Director Nathalie Gabala said.