A Statement By Absa Bank Kenya PLC On A Story Published By Business Daily

We make reference to a misrepresentative article published in the Business Daily yesterday 7 October 2021 with the headline ‘Absa breaches lending law in KES 18.8 billion loan to EABL’.

The article was factually incorrect. Absa Bank Kenya PLC has no regulatory breaches associated with our transactions with East African Breweries PLC (“EABL”).

We submit regular returns with respect to our top clients and high-value transactions to our Regulators as required, and we have not breached the Single Borrower Limit requirements.

Absa Bank Kenya PLC is acutely aware of its duty to keep customer information confidential and ordinarily would not divulge such information with third parties.

However, in discussions with EABL and due to the unique circumstances and the inaccurate nature of this article, we have received their express consent to disclose information relating to certain transactions with us as follows:

Absa Bank Kenya PLC, as one of the principal bankers of East African Breweries, has approved total facilities amounting to KES 10,872,500,000, to EABL; which amount is within our current Single Borrower Limit of KES 11,214,103,250

As part of one of the largest pan-African financial institutions, and in line with market practice, some of our high-value transactions are executed through Absa Bank Kenya PLC as an agent of Absa Group, its subsidiaries, and affiliates across the continent. As such, EABL has other approved facilities with other Absa Group affiliates amounting to approximately KES 9,000,000,000.

In view of the foregoing Absa Bank Kenya PLC is not in breach of Single Borrower Limit regulations.

Absa Bank Kenya PLC and EABL enjoy a strong long-term financial partnership which continues to yield mutual benefits both for the two organizations as well as the Kenyan economy.

We would like to assure all our customers, shareholders, and other stakeholders that we take all matters of regulatory compliance extremely seriously and are committed to continuing upholding the highest standards of compliance and governance.