18.9 C
Sunday, April 14, 2024

Kigen Moi: Little Known Gideon Moi’s Son At The Helm Of Multi-billion Power Plant Sosian Energy

Kigen Moi is the company director of Sosian Energy  Gideon Moi's first born is an alumnus of Bristol University in England  Over the weekend,...

The Top Five Tailors In Kenya

HomeWealthConsolidated Bank Seeking Bailout Following KSh 3.2 Billion Loss

Consolidated Bank Seeking Bailout Following KSh 3.2 Billion Loss

Consolidated Bank is eyeing a fresh bailout after incurring losses of up to KSh 3.2 billion.

The financial institution incurred KSh 299.5 million losses in 2021 from a KSh 278.3 million by the end of 2020.

Following the losses, the company is now in breach of regulatory benchmarks by the Central Bank of Kenya (CBK).

In December 2021, the bank’s regulatory capital ratios were below the CBK set regulatory minimum with total capital assets at 5.3 percent against a minimum of 14.5 percent.

With the bank’s financial situation, Auditor-General Nancy Gathungu has cast doubts on the bank’s ability to continue.

However, Consolidated Bank chairman, Peter Musei, and director Kennedy Otiso said the board is engaging the National Treasury and other potential shareholders to inject additional capital in the bank.

“The National Treasury, which is a majority shareholder with 93.4 percent is committed to continuing supporting the bank to meet regulatory capital ratios and implement the 2022 turnaround strategy,” he said.

Consolidated Bank has sought several bailouts from the government, and its principal shareholders since 2018.

In October 2019, the bank received a KSh 1.6 billion capital injection from the National Treasury to sustain operations and finance bond.