Thursday, 29 May 2014
CO-OP BANK OF KENYA SET FOR UGANDA, TANZANIA ENTRY
Co-operative Bank of Kenya group managing director, Gideon Muriuki.
Co-operative Bank plans to set up shop in Uganda and Tanzania using its model of partnering with local co-operative movements.
Co-op Bank used a similar strategy to enter the South Sudan market, which it says will break-even in June, eight months after launch.
“The bank is in the process of expanding operations in Uganda, Tanzania and South Sudan in partnership with co-operative movements in those countries,” said Co-op Bank group managing director Gideon Muriuki in the lender’s recently released annual report for 2013.
Co-op Bank— owned 64.56 per cent by Kenya’s co-operative movement —is Kenya’s fourth largest lender after KCB, Equity and Standard Chartered.
The majority stake is held by Co-op Holdings Co-operative Society Ltd, an investment vehicle bringing together 3,815 Kenyan Saccos.
The lender holds a 51 per cent stake in the Co-operative Bank of South Sudan with the remaining 49 per cent owned by the young country’s budding co-operative movement.
Its Juba operations made a loss of Sh267.3 million in the three months of operations to December 2013.
“It is expected to contribute positively to our profitability from June this year,” said Mr Muriuki.
Co-op Bank will join nine other Kenyan banks with operations in Uganda.