News and Analysis
May 4, 2026
I&M Bank Limited has issued a Medium Term Note (MTN) programme as it targets to raise Ksh20 billion to support its lending programmes and expansion.
According to a notice issued by the bank on April 30, 2026, the first tranche of the issuance will seek to raise Ksh10 billion, with a 30% greenshoe option.
The notes will be listed on the Main Fixed Income Securities Market Segment of the Nairobi Securities Exchange (NSE).
The first tranche is expected to have a tenor of five and a half years and will be structured as a fixed-rate instrument. The bank is offering an interest rate of 12.2%
Investors will receive interest payments twice a year, with the principal repaid at maturity.
The minimum subscription amount is Ksh500,000.
The bank noted that the proceeds from the issuance will be used to support onward lending and fund strategic expansion plans.
“The issuance forms part of the Bank’s long-term funding strategy and is intended to support onward lending, long-term funding for strategic growth and expansion, and strengthening capital adequacy through Tier II capital,” read the statement in part.
The offer opened on April 30, 2026, and is scheduled to close on May 15, 2026.
Allotment is expected on May 18, with the notes set to begin trading on May 21, 2026.
Speaking on the issuance, I&M Group Regional CEO Kihara Maina said the move reflects confidence in the bank’s long-term strategy and resilience.
He noted that the funds raised will enhance the bank’s ability to lend, improve funding stability, and reinforce its capital position in line with strategic priorities.
The bank also pointed to its strong credit profile, highlighting a national long-term rating of A+ by Fitch Ratings, as well as a track record of meeting obligations under previous note issuances.
“This proposed note issuance reflects our confidence in the Bank’s long-term strategy, underlying business strength and disciplined approach to growth,” Maina stated.
“The proceeds are intended to support lending, enhance funding resilience and strengthen our capital position in line with our strategic priorities.”
Recently, I&M Bank released its financial report for the year ended December 31, 2025. The bank reported having total assets of Ksh502 billion as at 31 December 2025, from Ksh334 billion as at 31 December 2021
Profit after tax reached Ksh18.8 billion, while profit before tax grew to Ksh24.2 billion from Ksh19.8 billion declared last year.
I&M joins corporate institutions that have issued bonds. The latest institutions to enter the bond market include Kenya Mortgage Refinance Company, Safaricom and EABL.
.png){kind=small}
Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.
.jpg)
