Consolidated Bank of Kenya is seeking an investor to pump in Ksh 3.5 billion as part of its balance sheet reorganisation.
In an advert published in a section of the local press, the lender, which is majority owned by the National Treasury, asked interested investors, both local and foreign, to submit their prequalifications by January 9 next year.
The government, through the Cabinet Secretary, National Treasury, holds 85.8% of the bank’s shareholding. The remaining stake is spread over 25 parastatals and other quasi government organisations.
Consolidated Bank was incorporated on December 7, 1989 . This was in an effort to stabilise the financial sector through the acquisition of nine insolvent institutions and thereafter restructuring them into a viable, professionally run commercial bank.
Last month, the bank’s shareholders approved the creation of new 175 million preference shares valued at Ksh 3.5 billion as it moved to shore up its thin capital base.
READ: WILL BETTY KYALO DELIVER THE GOODS FOR K24
“CBKL is implementing a balance sheet reorganisation strategy as a precursor to the implementation of a future privatisation strategy,” said
Chairman Charles Iyaya. Redeemable preference shares can be bought back at the option of a company either at a fixed rate on a specified date or over a certain period of time.
