Legal team size: Six

Major legal advisers/external counsel: Bowmans, Iseme Kamau & Maema/DLA Piper, Walker Kontos, Oraro & Company, Anjarwalla & Khanna/ALN

What are the most significant cases and transactions that your legal team has recently been involved in?

Absa Bank Kenya (Absa Kenya) and Absa Group provided Acorn Student Accommodation D-REIT a six-year development finance loan of KES$6.7bn to part finance the development of ten sustainable, high quality, purpose-built student accommodation projects. Acorn Student Accommodation D-REIT are pioneers of REIT market development in Nairobi, with Acorn Student Accommodation D-REIT being the first issuers of a development REIT in Africa. With this deal Absa Kenya became the first bank to finance a development REIT in a bilateral loan agreement in Sub-Saharan Africa. This was also the first sustainable finance for a commercial property finance transaction outside of South Africa.

Sun King and Citi have established a first-of-its-kind, bank-led and entirely Kenyan-Shilling denominated US$130mn sustainable securitisation transaction. The transaction leverages Sun King’s existing and future Kenyan customers’ payments for solar products to raise funding for further growth and expansion. Arranged by Citi and supported by leading development finance institutions and commercial lenders from six countries across the globe, the investment paves the way for future African securitisation deals and diversifies funding for Kenya’s off-grid solar energy sector.

This securitisation involves participations by both commercial and development finance institutions, including ABSA Kenya, British International Investment, Citi, FMO, Norfund, Standard Bank Kenya and the Trade and Development Bank. Citi served as the sole arranger, primary placement agent, security agent, facility agent, cash manager, sustainability structuring bank and secured accounts bank with Standard Bank Kenya acting as the co-placement agent.

Which recent political, economic or regulatory changes have impacted your work the most in the past year?

Particularly monetary policy adjustments. In a recent Monetary Policy Committee meeting, the Central Bank of Kenya (CBK) decided to raise the base lending rate by 2 percentage points, bringing it to 12.5%. This move has been largely influenced by the fluctuating exchange rate of the Kenyan shilling against the US dollar. As a result, commercial banks have increased their loan rates, making credit facilities significantly more expensive.

Are there any causes, business or otherwise, that you are passionate about?

I am passionate about financial inclusivity for small and medium enterprises (SMEs). SMEs are the backbone of many African economies, driving growth, innovation, and employment. However, many SMEs struggle to fully utilise and benefit from banking services, which hampers their growth potential. By educating SMEs on how to exploit banking services to their utmost potential, as well as addressing barriers to financial inclusivity such as easier access to banking services; financial literacy; and reducing the cost of banking services, we can ignite a significant transformation in the professional and economic landscape of Africa.