NAIROBI, June 17 (Reuters) - The chief executive of Egypt's Commercial International Bank (CIB) branch in Kenya said on Wednesday that the bank aims to triple its market share over the next two years to move into the second tier of credit institutions.

The Egyptian bank entered the Kenyan market six years ago through an acquisition and currently holds a market share of approximately 0.3 percent, classifying it as a Tier 3 bank. Tier 2 banks typically have a market share exceeding one percent.

"We need to triple the size of our business... within two years," Tyrus Mwethega, chief executive of Commercial Bank International Kenya, told reporters.

He added that the branch has a capital base of 5.4 billion shillings ($41.8 million), with assets growing by more than 40 percent last year, driven by a 68 percent increase in lending.

The bank plans to expand its retail operations by offering daily interest on deposits, a move that departs from the industry's prevailing practice where current accounts typically do not earn interest. The bank will also focus on financing trade and small and medium-sized enterprises (SMEs).

Mwethija said that Commercial International Bank Kenya is leveraging the strong trade ties between Egypt and Kenya to offer opportunities such as pre-financing to exporters. Egypt imports about 98 percent of its tea from Kenya, which in turn imports manufactured goods from Egypt.

He added that the bank will also provide loans to companies based on cash flow rather than traditional asset-backed guarantees, while managing the associated risks.

Kenya has more than 30 commercial banks, and the sector is dominated by local banks such as KCB Group and Equity Group, along with international banks including Standard Group, Apsa and Standard Chartered.

(US$1 = 129.2500 Kenyan shillings)