MIRA INFORM REPORT

Report No. :	487752
Report Date :	25.01.2018

IDENTIFICATION DETAILS

Name :	KENYA COMMERCIAL BANK LTD
Registered Office :	Trade Finance Centre, Kencom House, Moi Avenue, Nairobi, P. O. Box 48400-00100, Nairobi
Country :	Kenya
Financials (as on) :	31.12.2014
Date of Incorporation :	10.09.1970
Com. Reg. No.:	9519
Legal Form :	Limited Corporation
Line of Business :	Registered to operate as a banking institution providing corporate and retail banking services, for savings, current and loan accounts
No. of Employees :	7,850

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Kenya	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

KENYA - ECONOMIC OVERVIEW

Kenya is the economic, financial, and transport hub of East Africa. Kenya’s real GDP growth has averaged over 5% for the last eight years. Since 2014, Kenya has been ranked as a lower middle income country because its per capita GDP crossed a World Bank threshold. While Kenya has a growing entrepreneurial middle class and steady growth, its economic and development trajectory could be impaired by weak governance and corruption. Although reliable numbers are hard to find, unemployment and under-employment are extremely high, and could be near 40% of the population.

Agriculture remains the backbone of the Kenyan economy, contributing one-third of GDP. About 75% of Kenya’s population of roughly 44.2 million work at least part-time in the agricultural sector, including livestock and pastoral activities. Over 75% of agricultural output is from small-scale, rain-fed farming or livestock production.

Inadequate infrastructure continues to hamper Kenya’s efforts to improve its annual growth to the 8%-10% range so that it can meaningfully address poverty and unemployment. The KENYATTA administration has been successful in courting external investment for infrastructure development. International financial institutions and donors remain important to Kenya's economic growth and development, but Kenya has also successfully raised capital in the global bond market. Kenya issued its first sovereign bond offering in mid-2014. Nairobi has contracted with a Chinese company to construct a new standard gauge railway connecting Mombasa and Nairobi, with completion expected in June 2017. In 2013, the country adopted a devolved system of government with the creation of 47 counties, and is in the process of devolving state revenues and responsibilities to the counties. Inflationary pressures and sharp currency depreciation peaked in early 2012 but have since abated following low global food and fuel prices and monetary interventions by the Central Bank. Drought-like conditions in parts of the country have pushed 2017 inflation above 8%. Chronic budget deficits, including a shortage of funds in mid-2015, hampered the government’s ability to implement proposed development programs, but the economy is back in balance with many indicators, including foreign exchange reserves, interest rates, and FDI moving in the right direction. Underlying weaknesses were exposed in the banking sector in 2016 when the government was forced to take over three small and undercapitalized banks. In 2016, the government enacted legislation that limits interest rates banks can charge on loans and set a rate that banks must pay their depositors. This measure led to a sharp shrinkage of credit in the economy.

Tourism holds a significant place in Kenya’s economy. A spate of terrorist attacks by the Somalia-based group al-Shabaab reduced international tourism earning after their deadly 2013 attack on Nairobi’s Westgate mall, which killed 67 people, but the sector is now recovering. In 2016, tourist arrivals grew by 17% while revenues from tourism increased by 37%.

Source : CIA

Company name
Registered Name:	KENYA COMMERCIAL BANK LTD
Requested Name:	KENYA COMMERCIAL BANK LTD
Other Names:	KCB KENYA BANK LTD
ADDRESS AND TELECOMMUNICATION
Physical Address:	Trade Finance Centre, Kencom House, Moi Avenue, Nairobi,
Postal Address:	P. O. Box 48400-00100,
	Nairobi,
Country:	Kenya
Phone:	254-20-247691/216405/331698/338006/3270000
Fax:	254-20-338006/216405
Email:	kcbhq@kcb.co.ke/dgithira@kcb.co.ke/sgkingori@kcb.co.ke
Website:	www.kcb.co.ke
CREDIT OPINION
Financial Index as of December 2017 shows subject firm with a medium risk of credit. However, bank and credit information obtained reveal a history of prompt payments.
LEGAL
Legal Form:		Limited Corporation
Date Incorporated:		10-Sept-1970
Reg. Number:		9519
Nominal Capital		KES. 2,984,228,000
Subscribed Capital		KES. 2,984,228,000
Subscribed Capital is Subscribed in the following form:
		Position	Shares
Mr. Ngeny Biwott		Group Chairman
Mr. Joshua Oigara		Group CEO
Mr. Lawrence Kimathi Kiambi		CFO
Mr. Adil Khawaja		Director
Mr. Tom Ipomai		Director
Mr. Henry Rotich		Director
Mr. Catherine Kola		Director
Mrs. Charity Muya-Ngaruiya		Director
General Joseph Raymond Kibwana		Director
Mr. John O. A. Nyerere		Director
Mrs. Georgina Malombe		Director
Mr. Samuel Kingori Gathitu		Head of IT
Mr. Joseph Kania		Secretary
KCB Group Limited		Shareholder
RELATED COMPANIES
None		Parent company.
None		Subsidiary company.
KENCOM HOUSE LTD, KENYA COMMERCIAL BANK (T) LTD, KENYA COMMERCIAL BANK NOMINEES LTD, KENYA COMMERCIAL BANK UGANDA LIMITED, KENYA COMMERCIAL BANK (SOUTH SUDAN) LIMITED, KENYA COMMERCIAL BANK (TANZANIA) LIMITED, KENYA COMMERCIAL FINANCE COMPANY LTD, NOTCUTT LONGARONI & CO (K) LTD, SAVINGS & LOANS K LTD, KENYA COMMERCIAL BANK (BURUNDI) LIMITED, KENYA COMMERCIAL BANK (RWANDA) LIMITED, KCB INSURANCE AGENCY LIMITED, KCB CAPITAL LIMITED.		Affiliated companies.
None		Shareholder of subject firm.
Various in East Africa		Branches of the firm
OPERATIONS
Registered to operate as a Banking institution providing corporate and retail banking services, for savings, current and loan accounts
Imports:		Asia, Europe
Exports:		None
Trademarks:		None
Terms of sale:		Cash (20%) and 25-90 days (80%), invoices.
Main Customers:		General Public, firms and organizations
Employees:		7,850 employees.
Vehicles:		Several motor vehicles.
Territory of sales:		Kenya
Location:		Owned premises, 20,000 square feet,
AUDITORS AND INSURANCE
Auditors:		Information not available.
Insurance Brokers:		Information not available.
FINANCE
Currency Reported:		Kenyan Shillings (KES.)
Approx. Ex. Rate:		1 US Dollar = 102.41 Kenyan Shillings
Fiscal Year End:		December 31, 2017
Inflation:		According to information given by independent sources, the inflation at December 31st, 2017 was of 13%.
Financial Information Submitted below
BANK
Bank Name:		Self
Branch:		Kenya
Comments:		None
TRADE REFERENCES
Experiences:		Good
NOTARIAL BONDS None
COMMENTS / ADDITIONAL INFORMATION
This information was obtained from outside sources other than the subject company itself and confirmed the above subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.64
UK Pound	1	INR 89.32
Euro	1	INR 78.45
KES	1	INR 0.62

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.