Sidian Bank has raised Sh3 billion in fresh capital through a rights issue, consolidating a series of fundraisers as it seeks to boost capital and sustain growth.
The money was raised in two tranches in January and February this year, following approval by the bank’s management board on November 28, 2025.
The latest fundraiser means that Sidian has now increased its capital for the third straight year through a rights issue, coinciding with a strong growth phase for the lender, which has been elevated to a mid-tier bank.
‘The capital injection will support continued business growth and improve the bank’s regulatory capital,’ says the lender in its latest annual report.
Sidian says it raised Sh1.935 billion in January this year, followed by Sh1.065 billion in February. The latest round of capital-raising follows the Sh1.095 billion raised in 2025 and Sh1.891 billion in the previous year from shareholders.
This means that over the past three years, Sidian has raised close to Sh6 billion in fresh capital from shareholders to firm up its growth strategy. The lender graduated to tier II (medium bank) status in the third quarter of last year from a tier III (small lender) ranking.
The lender now wants to sustain the momentum through various strategies, including digital banking, anchor clients and ecosystem banking, trade finance, infrastructure financing, brand positioning, sustainability, and risk management.
‘As at September 30, 2025, the bank attained tier II (medium) status based on its growth. The bank’s strategies in 2026 are aimed at further growing and propelling the bank towards becoming a top-tier II bank,’ said the lender.
Sidian’s core capital rose to Sh11.63 billion as at the end of February 2026 from Sh8.15 billion it held at the end of December last year, pointing to the impact of the rights issue on the balance sheet.
The lender’s series of fundraising comes amid the revised core capital requirements for Kenyan banks, from a minimum of Sh1 billion to Sh10 billion, which banks have to comply with by the end of 2029 in phases.
The Business Laws (Amendment) Act 2024 revised the minimum core capital in the banking sector from Sh1 billion to Sh3 billion by the end of December 2025, Sh5 billion by the close of 2026, Sh6 billion by the end of 2027, Sh8 billion in 2028, and Sh10 billion by the close of 2029.
Sidian’s latest core capital means it may still require some additional capital for full compliance come December 2029, unless organic growth fully covers the shortfall.
The lender has seen an accelerated pace of growth over the last two years, with net profit rising six times to Sh1.72 billion in 2025 from Sh287.35 million in 2024. It had posted a net loss of Sh447.95 million in 2023.
Sidian’s assets hit Sh90.8 billion as of December 2025, up from 60.2 billion in a similar period in 2024 and Sh44.74 billion in 2023.
Deposits from customers have more than doubled in three years to hit Sh72.3 billion in December 2025 from Sh27.6 billion in December 2023.