Summary of Proposed Investment
Project Number
7017
Company Name
K-REP BANK LIMITED
Date SPI Disclosed
Sep 7, 1995
Country
Kenya
Industry
Financial Markets
Status
Completed
Sector
Microfinance and Small Business - Non Commercial Banking
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Dec 28, 1995
Signed : Jun 3, 1997
Invested : Nov 29, 1999
Project Description
SUMMARY OF PROJECT INFORMATION (SPI)
Project Name Kenya-K-Rep Bank (KRB) (AEF Project)
Region Sub-Saharan Africa
Sector Finance
Project No 007017
Projected Board Date November 15, 1995
Company Name K-Rep Bank
Technical Partner and/or Major Shareholders
Kenya Rural Enterprise Program: 50%
IFC: 12.5%
Other foreign investors: 25%
Local investors 12.5%
Project Cost including proposed IFC investment
Up to US$6 million
Proposed IFC investment: Up to US$1 million
Location of project and Description of site
Headquartered in Nairobi with branches throughout Kenya
Description of Company and Purpose of Project
The project is intended to transform a successful micro-enterprise credit program in Kenya, presently managed by Kenya Rural Enterprise Program (K-Rep) into a private commercial bank - K-Rep Bank. KRB will provide banking and financial services to micro-enterprises which would otherwise be excluded from borrowing from formal financial institutions due to lack of collateral and high transaction costs. The transformation is necessary because K-Rep''s micro-credit program in existence, since 1984, has long since surpassed its ability to fund continued growth via non-market, concessional sources. As a bank, KRB will be able to fund itself directly through deposit taking and public stock offerings. KRB will be the first private bank in Kenya, and just one of the two banks in Africa, that is fully targeted to serving micro-enterprises. KRB is expected to have a major impact on income and employment creation among low-income groups as has been demonstrated by K-Rep and similar institutions worldwide. In addition to its very real benefits vis-a-vis income and employment, the KRB project represents an extension of the Kenyan financial system: a broadening of the range of financial services offered and the percentage of the population with access to these services; and an opening and democratization of capital markets.
Environmental Categories and Issues
The project is a Category "C" project according to IFC Environmental Review Procedures and therefore no environmental review is required.
Date SPI sent to PIC September 7, 1995
For additional information contact: Corporate Relations Unit:
telephone: (202) 473-7711
facsimile: (202) 676-0365
Project Name Kenya-K-Rep Bank (KRB) (AEF Project)
Region Sub-Saharan Africa
Sector Finance
Project No 007017
Projected Board Date November 15, 1995
Company Name K-Rep Bank
Technical Partner and/or Major Shareholders
Kenya Rural Enterprise Program: 50%
IFC: 12.5%
Other foreign investors: 25%
Local investors 12.5%
Project Cost including proposed IFC investment
Up to US$6 million
Proposed IFC investment: Up to US$1 million
Location of project and Description of site
Headquartered in Nairobi with branches throughout Kenya
Description of Company and Purpose of Project
The project is intended to transform a successful micro-enterprise credit program in Kenya, presently managed by Kenya Rural Enterprise Program (K-Rep) into a private commercial bank - K-Rep Bank. KRB will provide banking and financial services to micro-enterprises which would otherwise be excluded from borrowing from formal financial institutions due to lack of collateral and high transaction costs. The transformation is necessary because K-Rep''s micro-credit program in existence, since 1984, has long since surpassed its ability to fund continued growth via non-market, concessional sources. As a bank, KRB will be able to fund itself directly through deposit taking and public stock offerings. KRB will be the first private bank in Kenya, and just one of the two banks in Africa, that is fully targeted to serving micro-enterprises. KRB is expected to have a major impact on income and employment creation among low-income groups as has been demonstrated by K-Rep and similar institutions worldwide. In addition to its very real benefits vis-a-vis income and employment, the KRB project represents an extension of the Kenyan financial system: a broadening of the range of financial services offered and the percentage of the population with access to these services; and an opening and democratization of capital markets.
Environmental Categories and Issues
The project is a Category "C" project according to IFC Environmental Review Procedures and therefore no environmental review is required.
Date SPI sent to PIC September 7, 1995
For additional information contact: Corporate Relations Unit:
telephone: (202) 473-7711
facsimile: (202) 676-0365
Sponsor / Cost / Location
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