Here are our views on the news making headlines today for Kenya:
Equity Bank plans Sh200 billion ten country expansion. The lender said it had already signed loan agreements for KES 36 billion USD 400 million)—and Tuesday created additional shares worth KES 20 billion to be used in the acquisition process.
Our View: We believe this portends well with the bank’s strategy as it remains keen on transforming and adopting a Pan-African banking model which will place it ahead of the competition. Agency banking has enabled Equity expand its presence and also help the group contain its operating costs as it is operated on a variable cost model. Their strategic focus on SMEs has enabled the bank grow its loan book portfolio substantially. SME lending is a fast growing area, hence the focus on the sector.
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