NIC Bank expands branch network into Machakos County

NIC Bank is eyeing a fast growing value chain in Machakos County. (PIX: Courtesy)

Listed lender NIC Bank Limited has opened a new branch in Machakos County as part of its expansion plan to reach more retail customers and grow its SME business.

The Machakos branch, which was opened this week, will bring the total number of branches NIC Bank has in Kenya to 25. This is the first of a number of branches expected to be opened this year.

NIC Bank Group Managing Director John Gachora said the bank is looking to tap into the value chain in Machakos County, which is growing fast. The bank already has asset finance clientele in the county who have in the past been served from Nairobi.

“Our strategy is to grow our footprint across the country by investing in new full-fledged branches in counties. With more branches we can reach more customers and strengthen our deposit base so as to underpin growth in our loan books for both the retail and business segments,” said Mr.Gachora.

“We will be rolling out our ambitious growth strategy this year with a focus on SME, corporate and retail customers. This is on the back of the successful capital raising programme we had in 2014,” he said.

In addition to the existing branches, NIC has a partnership with Post Bank which has a wide network of over 90 branches in Kenya. The partnership enables NIC to reach more Kenyans.

In August 2014, the bank’s shareholders approved the lender to raise additional capital via debt and equity. In September, NIC listed and started trading its Ksh5.5 billion bond at the Nairobi Securities Exchange (NSE).

Last month the bank raised KES 2.1bn through a Rights Issue that received a subscription of 221 pc.

“The success of our capital raising is a welcome vote of confidence by shareholders on the Bank’s long-term strategy. The money raised will help us focus on continued growth in the coming years as we continue to invest in Kenya and the region,” said Mr. Gachora.