In a strategic move to solidify its presence in the Kenyan banking sector, Access Holdings Plc, a Lagos-based financial services group led by Nigerian banker Herbert Wigwe, has poured Ksh1 billion ($7 million) into its subsidiary, Access Bank Kenya Plc.
The capital injection into Access Bank Kenya comes shortly after Access Holdings finalized an agreement to acquire the Sub-Saharan African subsidiaries of the UK-based multinational bank Standard Chartered Bank.
The $7-million capital is poised to bolster Access Bank Kenya’s financial reserves, enhancing its shareholder funds and capital ratios.
The capital injection is anticipated to cater to the unit’s immediate capital requirements and strategically position the bank to fulfill its growth targets within the Kenyan market.
Wigwe, Access Holdings’ Group CEO and a prominent figure in Nigeria’s banking sector, commented on this development, stating: “As a leading financial institution on the continent, we remain forward-thinking in our approach to growth and capitalization.”
This financial injection will supplement Access Bank Kenya’s capital requirement, as the bank secured Ksh1.1 billion ($7.65 million) from the Central Bank of Kenya earlier in the year to maintain compliance with statutory capital mandates.
Access Holdings, boasting a significant market capitalization on the Nigerian Exchange, currently operates in 12 African countries. The group is now poised to broaden its European presence by consolidating existing operations in London and introducing a new unit in France.
Wigwe, a pivotal force in Access Holdings’ expansion, owns a 9.09-percent stake in the lender, equivalent to 3,230,789,014 ordinary shares.
This recent capital injection is part of a broader strategic initiative undertaken by Access Holdings to amplify the bank’s reach across Africa.
Earlier this year, under Wigwe’s leadership, Access Holdings pledged a substantial $300-million capital investment to its flagship subsidiary, Access Bank.
This tier-one capital-qualifying Mandatory Convertible Instrument aims to fortify the bank’s presence across the African continent, building upon a series of acquisitions that have significantly enriched its influence within key trade and payment corridors.
