NCBA opens branch in Ruiru, gets debt B+ rating from Fitch
Mathew Ndung’u and Oliver Musembi
EXPANSION: NCBA Bank has opened a new branch in Ruiru, Kiambu County.
The branch at Kamakis area along the Eastern Bypass, becomes the 77th in the country.
The bank which plans to open 15 more branches by the end of the year in various parts of the country hopes to have 150 branches by year 2024.
Group Managing director John Gachora said the bank has deployed its digital platform in the banking sector in the country to make transactions easier for all customers.
He noted the bank was attracted to Kamakis owing to the area’s vast business and population growth which have increased demand for banking services.
Gachora termed the bank as the largest in the country having transacted with Safaricom’s Mshwari and Fuliza customers.
“We have been working with Safaricom on their Fuliza and Mshwari services where the bank has been giving the loans. If you take credit from the two services, then you are banking with us,” he said.
Kiambu governor James Nyoro who was the chief guest during the branch opening urged NCBA to develop specific products that will enable smallholder farmers engaged in tea, coffee, avocado, pineapples and dairy farming to borrow affordably to improve their ventures.
Nyoro said that the new branch right at the heart of the populous Constituency has a multiplier effect that will see its residents have access to loan services, asset financing, SME support programs among other lending facilities with ease.
He maintained that key sectors such as agriculture, manufacturing, financial services, co-operatives, ICT, health, education and trade are of special interest to the government because of their impact on the livelihoods of the residents.
Default ratings
Meanwhile, NCBA Group and NCBA Bank Kenya have been assigned long-term default ratings of B+ with a negative rating outlook by the global credit rating firm, Fitch Ratings.
The B+ rating is a result of the standalone creditworthiness of the Group on the back of limited probability of sovereign support.
The negative outlook corresponds to the rating the firm has also assigned to Kenya, owing to the country’s credit profile and being the host to the Group’s operations.
Fitch also indicated that the bank’s viability rating balances the challenges of the operating environment and weak asset quality against the impact of an enlarged franchise, good profitability and capitalization as well as healthy funding and liquidity.
