UPDATE 1-Kenya Commercial Bank's cash call undersubscribed

NAIROBI, Aug 10 (Reuters) - Kenya Commercial Bank received an 82.56 percent subscription rate for its 15 billion shillings ($189 million) rights issue, raising 12.45 billion to fund growth, its chairman said on Tuesday.

Ranked the largest bank by assets in the country, KCB plans to deploy the funds in its regional growth strategy and in shoring up minimum capital to allow it to lend more.

'Our new capital position gives us sufficient cover to continue to increase our business within the current momentum and continue to be within the Central Bank of Kenya's prudential ratios,' Peter Muthoka told reporters.

Chief executive Martin Luke Oduor-Otieno said the bank now had the capacity to double its loan book and its deposits. KCB operates across the region, from Tanzania to South Sudan.

(Editing by Dan Lalor)

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