1 ½ years ago, Diamond Trust Bank raised 735 million from shareholders, and now they are back this time targeting another 1.6 billion shillings ($24 million). NIC bank also has a rights issue on-going while that of Housing Finance has stalled temporarily.
The rapid growth of assets, loans and deposits has created a gap in capital that banks will need to fill up to maintain capital adequacy and Basel II requirements. Other banks likely to require to raise capital could include Kenya Commercial (after a previous right issue 2004), Cooperative, National Bank of Kenya, Commercial Bank of Africa, Standard Chartered, Stanbic, Investment & Mortgages, Barclays, Equity, and even the new CFC/Stanbic Bank.
