Consolidated Bank, which is fully owned by the Government is seeking fresh funds barely two years after it received Sh1.6 billion sustenance from National Treasury to steady operations.
The bank has accumulated losses of up to Sh3.2 billion after it extended losses to Sh299.5 million in 2021 from a loss of Sh278.3 million in 2020.
These losses have contributed to a financial dilemma and in breach of regulations benchmarks by the Central Bank of Kenya (CBK).
The State-owned bank’s regulatory capital ratios were below the CBK set regulations minimum with a total capital risk-weighted assets at 5.3 per cent against a minimum of 14.5 per cent as per December 2021.
“The board is engaging the National Treasury and other potential shareholders to inject additional capital in the bank to ensure compliance with prudential capital rations,” said Peter Musei, Consolidated bank chairman.
The Auditor-General Nancy Gathungu added that the bank will pull through with the support from the state and other shareholders.
Privatisations commission has tried to sell of Consolidated bank even hiring PKF Consulting limited to help t6he bank with its internal restructuring before Sh3.5 billion deal with a strategic investor.