From Exchange Announcements...

On April 21, 2008, K-Rep Bank announced a change of business model to include institutional and commercial banking, in addition to its core microfinance banking business. The additional business lines are part of its growth strategy aimed at increasing its customer base among the un-banked and small and medium scale businesses. The bank is also eyeing additional income from these two segments. The change includes plans to double its branches across the country by 2010. Currently, the bank has 25.

Banks like K-Rep, which traditionally offer microfinance products, have been forced back to the drawing board after the big banks started massive expansion targeting a similar clientele.

The expansion plan will include continuous innovation of new products. In the recent past, the bank has come up with specific products targeted low income, un-banked Kenyans. These include Ungana, a group account targeting self help and investment co-operatives; A partnership with the Kenya Livestock Marketing Council to enable pastoralists to access loans to finance meat market orders and restock herds; and an IT system, which will enable its branches to offer wireless banking.

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