Credit Bank’s anchor shareholder, the Sansora Group of companies, has backed the lender’s plan to list shares on the Nairobi Securities Exchange (NSE) by way of introduction in a move to grant it visibility and allow price discovery of the investment on the stock market.
This signifies a retreat from an earlier plan announced in August last year that the lender intended to raise Sh1 billion from the stock market through an initial public offering (IPO).
Listing by introduction occurs when a company takes its existing shares and lists them on an exchange without the aim of raising capital immediately, but to be able to do so at a later date when the company is in need of capital.
Listing prospects
Sansora’s backing is a major boost to the bank’s listing prospects ahead of the annual general meeting (AGM) scheduled for June 24 with the listing proposal topping the agenda.
“Our company is broadly supportive of the plans to list at the NSE, even as we await shareholder and regulatory guidance. We at Sansora believe the listing will receive broad support from other shareholders at the upcoming AGM on June 24.
However, Sansora has no plans to sell its stake in the bank in the foreseeable future,” Sansora Group chief executive Leon Nyachae said in an interview.
Sansora, which owns about 27 percent of the bank’s shares said the listing proposal has opened the lender to a growing interest from both the local and foreign investors.
Last year (2023) the tier 3 lender sold a 20 percent shareholding to a Mauritius-based private equity fund Shorecap III after the deal was consummated in April following approvals from the Competition Authority of Kenya and the Central Bank of Kenya.
Credit Bank is seeking more funding to implement its aggressive five-year (2021-2025) growth plan with hopes of achieving an asset base of Sh49 billion and Tier II status.
The lender is also in talks with a foreign private equity (PE) firm to sell an additional 25 percent stake.
As at December 31, 2022, the bank’s authorised share capital was 75,000,000 ordinary shares of Sh100 each of which 29,159,714 shares were issued and fully paid.
“The Sansora group of companies have served as the anchor shareholder of Credit Bank since 1986 and we look forward to playing this role for many years to come,” said Mr Nyachae.
Credit banks began operations in 1986 as a non-bank financial institution before securing a commercial banking licence in 1995.
Between 1995 and 2010, the lender served a niche market, mainly large businesses, before the strategy review in 2010 which positioned it as a retail-facing bank.
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
