Centum, the largest listed private equity company in Eastern Africa, has announced an additional investment of KES1.2bn ($11.71m) in K-Rep Bank, a Kenyan commercial bank.

The capital investment is in line with Centum’s strategy to increase its presence in the financial services sector after raising a KES6bn ($58.6m) bond in June 2015, which was partly targeted at increasing its investment in the bank.

In July 2015, the shareholders of K-Rep Bank approved a KES1.7bn ($16.59m) capital injection into the Bank through a rights issue, which was aimed at increasing the shareholders’ funds by 65% from the current KES2.6bn ($25.4m).

This is Centum’s pro rata participation into the rights issue with full participation expected from the other shareholders in the rights issue open period.

The cash injection is expected to increase the bank’s capitalization by 54% to KES3.8bn ($37.1m).

James Mworia, CEO of Centum Investment, said: “We are working together with the K-Rep Group, other shareholders, the Board and Management of K-Rep Bank, to create a robust banking experience and provide efficient and innovative financial services to all of K-Rep’s current and future customers.”

“The additional capital will play a significant role in enhancing customer experience through revitalization of the channel offering through mobile, internet and agency banking, refurbishment and expansion of the branch network and upgrade of the core banking system. Over the next five years we intend to help K-Rep Bank grow into a Tier II bank,” he added.

Centum increased its shareholding in K-Rep bank to 67.54% in November 2014 through a buyout of other shareholders.

K-Rep Bank was licensed in Kenya as full service commercial bank in 1999 by the Central Bank of Kenya.

It has since grown and as at June 30th 2015, had total assets of KES17.2bn with over 200,000 customers consisting of microfinance, retail and SMEs served through its 37 branches across the country.

Titus Karanja, MD of K-Rep Bank, said: “K-Rep Bank is pleased to receive this capital injection which is a clear indication of shareholder commitment to the growth of the Bank. With the injection, K-Rep bank now stands well in excess of the minimum statutory ratios and is well placed to enhance its services to customers.”