A Rights Issue is a way for companies to raise more capital by issuing more shares to their existing shareholders at a discount from their current price. The funds collected from selling  the new shares is utilized as capital by the company carrying out the rights issue.

Read here to learn more on how rights issues work.

With high interest rates on bank loans having prevailed for the better part of this year owing to the Central Bank's initiative to curb inflation, Kenyan listed companies - particularly banks -  have turned to rights issues to raise capital for their expansion.

Here are highlights of the Rights Issues that have taken place for Kenyan listed companies this year:

Kenya Airways

Purpose: To raise part of the capital for the airline’s strategic expansion.

Target: 20.7 billion shillings

How much was raised: 14.5 billion shillings (70% subscription)

New shares issued: 1,477,169,549 shares

Price of new shares: KES 14.00

Date commenced: 2^nd April 2012

Date ended: 27^th April 2012

Date the new shares were listed: 21^st June

Diamond Trust Bank

Purpose: To finance DTB’s strategic expansion across East Africa

Target: 1.8 billion shillings

How much was raised: 3.36 billion shillings (86.2% oversubscription)

New shares issued: 24,455,566 shares

Price of new shares: KES 74.00

Date commenced: 17^th July 2012

Date ended: 10 August 2012

Date new shares were listed: 12th September 2012

NIC Bank

Purpose: To raise capital for NIC Bank’s strategic expansion

Target: 2.07 billion shillings

How much was raised: To be announced on October 11^th

New shares issued: 98,724,391 shares

Price of new shares: KES 21

Date rights issue commenced: 27^th August

Date it will end: 14^th September

Date the new shares will be listed: October 23^rd

CFC Stanbic

Purpose: To raise capital for the expansion of CFC Stanbic Bank

Target: 4 billion shillings

Amount raised: Will be announced on 2^nd November

New shares to be issued: 121,637,427 shares

Price of new shares: KES 33

Date commenced: 12^th September

Will end on: 16^th October

Date the new shares will be listed: 8^th November

Standard Chartered

Purpose: To support the bank’s strategic agenda from 2013-2015

Target: 3.2 billion shillings

Amount raised: Will be announced on 14^th November

New shares to be issued: 22,082,856 shares

Price of new shares: KES 145

Date it will commence: 9th October

Will end on: 16^th November

Date the new shares will be listed: 27^th November