Sidian Bank Limited has raised KES 3 billion in fresh capital following a successful rights issue earlier this year, marking a key milestone in its ongoing growth strategy.
The tier II lender raised the funds in two tranches in January and February 2026, after approval by its Board of Management in November 2025. The fundraising marks the third consecutive year the bank has tapped shareholders for capital, raising nearly KES 6 billion.
The lender plans to direct the fresh capital towards supporting business growth, strengthening regulatory capital, and advancing key strategies such as digital banking, trade finance, infrastructure financing, brand positioning, sustainability, and risk management.
Sidian Bank’s Core Capital Exceeds CBK’s December 2029 Minimum Requirement
The rights issue increased the lenders core capital by 42.7% to KES 11.63 billion in February 2026, from KES 8.15 billion in December 2025, surpassing the KES 10 billion core capital minimum requirement set by the Central Bank of Kenya (CBK) for all commercial banks by December 2029.
The Business Laws (Amendment) Act 2024 revised the minimum core capital thresholds for banks from KES 1 billion to KES 3 billion by December 2025, KES 5 billion by the end of 2026, KES 6 billion by the close of 2027, KES 8 billion by the end of 2028, and KES 10 billion by December 2029. The initiative aims to enable banks to sustain growth and enhance their resilience amid increasing risks.
In September 2025, the CBK upgraded Sidian Bank Limited to a mid-sized peer group lender after it attained a market share of 1%, supported by strong growth in assets and deposits. The lender also recorded strong results in the FY2025, with profit after tax increasing six-fold to KES 1.74 billion from KES 287.4 million in the previous year, driven by robust revenue growth.
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