MICROCAPITAL BRIEF: Triodos Sells 14.5% Equity Stake in K-rep Bank of Kenya to Existing Shareholders Centum Investment, K-rep Group

The Triodos Sustainable Finance Foundation, a unit of the Netherlands-based Triodos Bank, recently sold its entire 14.5-percent equity stake in K-rep Bank of Kenya, a commercial bank founded in 1999 that provides services to low-income people. Existing shareholders Centum Investment Company Limited (Centum), a private Kenyan investment company, and K-rep Group, the parent company that also owns K-rep development agency and K-rep advisory services, purchased the shares for an undisclosed price.

Other minority shareholders also recently sold their shares, but the sizes of those stakes have not been disclosed. Centum’s purchases of shares give it a controlling interest in K-rep, an equity stake of 67.5 percent. Triodos had held a seat on the K-rep board of directors since 2000.

As of June 2013, Triodos Investment Management had EUR 2.4 billion (USD 3 billion) in total assets under management. As of 2014, Triodos finances 112 microfinance institutions in 45 countries.

As of September 2014, K-rep had total assets of KES 14.5 billion (USD 161 million), a gross loan portfolio of KES 10.2 billion (USD 113 million), total deposits of KES 600 million (USD 6.65 million) and reported profit after tax of KES 360 million (USD 4 million) for the fiscal year 2013.

As of March 31, 2014, Centum had KES 30 billion (USD 330 million) of its own assets under management and KES 120 billion (USD 1.33 billion) in third-party assets under management.

By Simon Pfanner, Research Associate

About Triodos Investment Management

Triodos Investment Management manages funds in a range of sectors including financial sector development in developing countries, renewable energy finance and venture capital. As of June 2013, Triodos Investment Management had EUR 2.4 billion (USD 3 billion) in total assets under management. As of 2014, Triodos finances 112 microfinance institutions in 45 countries.

About K-rep bank

K-rep bank is a commercial bank based in Kenya that focuses primarily on the microfinance sector. It was founded in 1999 by K-Rep Group Limited, a Kenyan microfinance enterprise established in 1984. Its products and services include microfinance loans, business loans, savings accounts and money transfer services. K-rep Bank has 200,000 customers served through 36 branches in Kenya. As of September 2014, K-rep had total assets of KES 14.5 billion (USD 161 million), a gross loan portfolio of KES 10.2 billion (USD 113 million), total deposits of KES 600 million (USD 6.65 million) and reported profit after tax of KES 360 million (USD 4 million) for the fiscal year 2013.

About Centum

Centum is an East African investment company listed on the Nairobi Securities Exchange that provides investments in private equity, real estate and infrastructure. As of March 31, 2014, Centum had KES 30 billion (USD 330 million) of its own assets under management and KES 120 billion (USD 1.33 billion) in third-party assets under management.

Sources and Additional Resources

[1] Triodos Bank Press Release, Triodos Investment Management completes sale of equity stake in K-REP Bank, Kenya

MicroCapital, November 7, 2014, VisionFund Selling Georgian Microfinance Institution (MFI) Credo to Impact Investors AccessHolding, responsAbility, Triodos

MicroCapital, January 25, 2012, K-Rep Bank of Kenya Spends $600k on Temenos IT System to Integrate Branch Data

MicroCapital, May 11, 2009, K-Rep Bank of Kenya Receives $2.2m Microfinance Investment from the African Development Bank (AfDB)

MicroCapital Universe Profile: Triodos Investment Management

MicroCapital Universe Profile: K-rep Bank

MicroCapital Universe Profile: Centum

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