Another Kenyan bank to open shop in Uganda, Tanzania
Posted Friday, May 30 2014 at 01:00
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 to Uganda and Tanzania 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-operative Bank, owned 64.56 per cent by Kenya’s co-operative movement, is Kenya’s fourth largest lender after KCB, Equity and Standard Chartered.
As of June 2013, it was the third-largest financial services provider in Kenya, by asset value, behind Kenya Commercial Bank and Barclays Bank Kenya.
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
Daily Monitor Correspondent