Co-op Bank set for Uganda, Tanzania entry

Corporate News

Co-operative Bank of Kenya group managing director, Gideon Muriuki. Photo/FILE 

By DAVID HERBLING

In Summary

• Co-op Bank will join nine other Kenyan banks with operations in Uganda.

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.