MTN micro loan users grow to seven million

Thursday July 2 2020

NCBA Bank offficials cut the tape during the

NCBA Bank offficials cut the tape during the launch of the new logo in Kampala yesterday. PHOTO | KELVIN ATUHAIRE 

By MARTIN LUTHER OKETCH

MoKosh, a micro lending platform managed under a partnership between telecom firm MTN and NCBA Bank has grown to seven million users, according to Mr Anthony Ndegwa, the NCBA Bank chief executive officer.
Speaking during a function to launch the NCBA Bank new logo, which comes after the successful merger of NC Bank and CBA Uganda, Mr Ndegwa said the bank will put focus on developing its digital presence driven by micro lending under MoKash.

Other focus areas, he said, will include assisting small and medium enterprises to develop capacity as well as developing the bank’s asset financing, advisory financial services and use of technology for the provision of financial services.

MoKash, he said currently has at least seven million subscribers and contributes immensely to the bank’s balance sheet.

However, Mr Ndegwa did not reveal transactional value and volumes.

NCBA Bank, which currently has five branches, 600,000 ordinary bank accounts and one agent for agency banking, recently completed a merger between NC Bank and CBA Uganda coming on the back of another merger of their parent companies in Kenya.

The merger makes NCBA Bank Uganda’s 15 largest financial institution with a total asset base of Shs550b and capital position of Shs84b. “As a combined entity, NCBA has a significant capital base and a strong liquidity profile,” he said.

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Mr Ndegwa also noted that beyond focus on SMEs, the bank will put emphasis on business development through providing advisory financial services, noting this is a key ingredient in broadening financing instruments.

NC Bank, which was a subsidiary of NIC Bank, started operations in 2012 before initiating a merger with CBA Uganda, a subsidiary of Commercial Bank of Africa Limited.

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