Kenya has not bought any additional shares in the bank since 2020, during which time Nigeria has invested twice, in 2021 and last year.
“Despite external headwinds (elections, conflict, currency volatility), Shelter Afrique raised Sh696.6 million ($5.40 million), led by Nigeria Sh663 million ($5.14 million) and Rwanda Sh33.6 million ($0.26 million), reaching 27 percent of its Sh2.58 billion ($20 million) equity target,” said Shelter Afrique in its annual report.
Kenya holds 21,061 shares, valued at an estimated Sh4.8 billion, while Nigeria has 22,656 shares valued at Sh5.17 billion.
The valuation is based on a declaration by Shelter Afrique that it was forfeiting 133,224 shares valued at Sh30.4 billion ($236.2 million) due to overdue subscription arrears by the holders.
The Pan-African financier is owned by 44 African countries, including Kenya and two financial institutions - African Development Bank and African Reinsurance Corporation.
Other States with shareholding in the development bank include Ghana (4.75 percent), Mali (4.99 percent), Cameroon (4.61 percent), and Cote d’Ivoire (3.95 percent).
Shelter Afrique has been trying to bring new shareholders on its roster. South Sudan had already agreed to join the bank and was endorsed in 2022 but is yet to make payment in order to take up its shareholding.
“Furthermore, engagements were conducted with great enthusiasm, and notable interest was expressed by several of the remaining nine African nations yet to become members, notably Angola, Egypt, Ethiopia, and Comoros,” states the annual report.
The shareholding of the development bank is likely to change as it undertakes a capital restructuring that has seen it invite The Arab Bank for Economic Development in Africa to lend Sh15.48 billion ($120 million) to its shareholders with subscription arrears. Failure to pay the arrears will see the shares forfeited and reallocated to other interested shareholders on the basis of first come first served.
The lender has also made a Sh25.8 billion cash call to shareholders, who will have a three-year window to participate in the rights issue.
Shelter Afrique is undergoing a turnaround after a turbulent decade that saw it record losses for seven years in a decade. It reported a profit of Sh69.9 million for the year ended December 2024, a drop from Sh126.8 million in the year ended 2023. Despite the decline. it marked the first time the Pan-African bank had reported profits for two consecutive years in the last decade.
The development bank had reported a loss of Sh1.5 billion in 2022 following a profit of Sh233 million in 2021 after making losses for six consecutive years from 2015.
The turnaround includes dealing with legacy non-performing loans, a portion of which were issued in Kenya.
