In a display of confidence in the Kenyan economy and in support of its Kenyan subsidiary’s change of strategy from defensive to offensive, the Bank of Africa Group (BOA Group) is to make an immediate capital injection of KES 1.5 Billion in BOA Kenya during the month of March 2020.
BOA Kenya has been reorganizing its business over the past four years with an aim of having a leaner balance sheet, improved asset quality and diversified liability mix supporting of efficient liquidity management.
It has been on a defensive strategy which included the consolidation of its business and rationalization of branch network given development and advancement in digital technology in driving banking business. The strategy necessitated shrinking the balance sheet for optimal capital management as the Bank refocused on its areas of strength, improving operational efficiency and enhancing level of technological adoption.
Key among the performance levers has been working with several customers on debt restructure with the objective of rehabilitating such non-performing debtors to support their business continuity amidst the market disruptions and economic slowdown in key sectors.
“The prolonged difficult economic environment has affected a magnitude of businesses, some of whom are our customers, and as a result some firms have struggled to manage operational costs and financial obligations. We have therefore had to take significant provisions in 2019 to cover the risk on these non-performing clients”, said BOA Kenya Managing Director, Mr. Ronald Marambii.
Mr. Marambii further stated that following years of reorganizing, the bank was now on a better base from which to grow and with the approved capitalization, should be able to embark on an offensive strategy.
BOA Kenya is also working on increasing regional trade aimed at key corridors where the BOA Group has Banking subsidiaries and will be aiming at enhancing operational efficiencies in transfers and cash collections for companies operating across the region.
“Kenya as a country hosts the IT infrastructure for the whole BOA group, and BOA Kenya intends to fully harness this group resource and churn out appropriate digital solutions to enhance customer efficiencies and service experience,” explained Mr. Marambii.
With the recent developments in the COVID-19 pandemic, BOA Kenya has put in place specific measures to not only safeguard the health of the employees and their families, but also to protect the health of clients and offer business support to the various business sectors in which it operates. The bank has implemented guidelines as issued by the Central Bank of Kenya, Kenya Bankers Association and also those issued by the BOA Group.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]