PE fund acquires stake in Kenyan bank

Private equity fund Shorecap III, managed by Equator Capital Partners, has acquired a 20% stake in Kenya’s Credit Bank PLC (CBP), effective 15 June 2023, according to an announcement by the Central Bank of Kenya (CBK). This move follows approvals by the CBK and the Cabinet Secretary for the National Treasury and Planning in April 2023.

Founded in 1986 and transitioning to a fully-fledged commercial bank in 1995, CBP currently operates 17 branches throughout Kenya. Specialising in providing services to small corporates and micro, small and medium-sized enterprises (MSMEs), it holds a 0.5% market share as of March 2023.

Registered in Mauritius, Shorecap’s primary focus is investing in inclusive financial services in Asia and Africa. Its objective is to broaden access to affordable and responsive financial products for underserved market segments. The fund’s LPs include the African Development Bank Group, CDC Holdings Guernsey Limited, European Investment Bank, KfW Development Bank, and Oesterreichische Entwicklungsbank AG (OeEB).