AEF K-Rep Bank Limited

completed

SUMMARY OF PROJECT INFORMATION (SPI)Project Name Kenya-K-Rep Bank (KRB) (AEF Project)Region Sub-Saharan AfricaSector FinanceProject No 007017Projected Board Date November 15, 1995Company Name K-Rep Bank Technical Partner and/or Major Shareholders Kenya Rural Enterprise Program: 50% IFC: 12.5% Other foreign investors: 25% Local investors 12.5%Project Cost including proposed IFC investment Up to US$6 million Proposed IFC investment: Up to US$1 millionLocation of project and Description of site Headquartered in Nairobi with branches throughout KenyaDescription of Company and Purpose of Project The project is intended to transform a successful micro-enterprise credit program in Kenya, presently managed by Kenya Rural Enterprise Program (K-Rep) into a private commercial bank - K-Rep Bank. KRB will provide banking and financial services to micro-enterprises which would otherwise be excluded from borrowing from formal financial institutions due to lack of collateral and high transaction costs. The transformation is necessary because K-Rep''s micro-credit program in existence, since 1984, has long since surpassed its ability to fund continued growth via non-market, concessional sources. As a bank, KRB will be able to fund itself directly through deposit taking and public stock offerings. KRB will be the first private bank in Kenya, and just one of the two banks in Africa, that is fully targeted to serving micro-enterprises. KRB is expected to have a major impact on income and employment creation among low-income groups as has been demonstrated by K-Rep and similar institutions worldwide. In addition to its very real benefits vis-a-vis income and employment, the KRB project represents an extension of the Kenyan financial system: a broadening of the range of financial services offered and the percentage of the population with access to these services; and an opening and democratization of capital markets.Environmental Categories and Issues The project is a Category "C" project according to IFC Environmental Review Procedures and therefore no environmental review is required.Date SPI sent to PIC September 7, 1995For additional information contact: Corporate Relations Unit:telephone: (202) 473-7711facsimile: (202) 676-0365