The KCB shares traded at an average of KShs33.50 on Tuesday, taking the bank's market capitalization to approximately KShs65 billion (just over USD1 billion).

It becomes only the fifth listed company in Kenya to reach that landmark.

KCB Group Chief Executive, Martin Oduor-Otieno, said the increase in value of the KCB share at the NSE reflected the ongoing growth momentum in the business.

"We had a good year in 2007 and have just released impressive first quarter results.

"We believe this has increased investor confidence in the bank leading to growing interest in the stock," he said.

KCB last week announced a 62 per cent increase in Q1 results of KSh1.65 billion from KSh1.1 billion for the same period in 2008.

David Mataen, Director of Corporate Finance in Faida Investment Bank commented:

"It marks the arrival of KCB in the big league of blue chip companies by global capital markets standards.

"The more companies in the NSE attain this milestone, the more Kenya becomes accepted as a destination for global investment capital flows.

It means that large global investors will now consider KCB as a worthy home for their investment resources."

KCB was a key driver in the NSE performance for most of 2007 with huge volumes traded, a trend that has continued in 2008.   

"It is an indication of the market's and investors' confidence in the growth prospects and strategic direction of KCB and in its management's ability to steer the bank towards improved shareholder value," added Mataen.

KCB is seeking regulatory approvals to raise additional capital to support its growth and expansion through a Rights Issue.