Sidian Bank has launched the final tranche of its Sh3 billion rights issue, aiming to raise an additional Sh500 million by the end of June 2025.
The lender secured regulatory approval from the Central Bank of Kenya (CBK) to proceed with the final phase, which marks the conclusion of a three-part capital-raising exercise initiated to strengthen the bank’s financial base.
Sidian Bank Managing Director Chege Thumbi said the fresh capital will help the institution meet statutory capital thresholds and boost its capacity in small and medium-sized enterprise (SME) lending and trade finance.
“This final tranche will enable us to meet our capital targets and support growth in our SME and trade finance portfolios,” Thumbi said.
The Sh3 billion rights issue, launched in 2022, has been critical in positioning Sidian Bank as a competitive mid-tier bank.
The funds are intended to support expansion, strengthen risk management, and enhance product development in targeted market segments.
The lender has consistently prioritized SME banking and trade finance sectors, seen as key to future growth.
Thumbi noted that the additional funding will also be used to develop digital banking platforms that cater to the evolving needs of its clientele.
“The capital raise not only ensures compliance with CBK’s prudential requirements but also aligns with our vision to be a bank of choice for entrepreneurs and traders,” Thumbi added.
The ongoing capital injection comes amid increased scrutiny by regulators on Kenyan banks to improve their capital adequacy, especially in light of rising credit risk and tightening global financial conditions.
Sidian Bank, formerly K-Rep Bank, was acquired by Centum Investment Company in 2014 and has since undergone strategic realignment aimed at transforming it into a modern, digitally enabled bank.
