Wednesday, September 20, 2023
Star Today Logo
  • Home
  • News
  • Business
  • Politics
  • Investigation
  • Health
  • Opinion
No Result
View All Result
Star Today Logo
Home Business

Co-op Bank injects Ksh372 million into South Sudan unit

May 14, 2022
in Business, News
Reading Time: 2 mins read
Co-op customers borrow Sh164m daily in digital salary advances
261
SHARES
Share on FacebookShare on TwitterShare on Whatsapp

Kenya’s Co-operative Bank has pumped in additional capital of Ksh372 million ($3.2 million) to its subsidiary in South Sudan. The unit has accumulated losses of Ksh3.29 billion ($28.36 million) in its eight years of operation.

The Juba-based subsidiary commenced operations in September 2013, and runs four branches.

It made a loss of Ksh484.41 million ($4.17 million) in 2021 up from a loss of Ksh1.56 billion ($13.44 million) in 2020.

Readers' Choice

Co-op Bank named SME Financier of the Year in Africa

Two foreigners lose Sh132m in a Mombasa Hotel

The lender, listed on the Nairobi Securities Exchange, said it has also written off a cost incurred to implement a new software amounting to Ksh671.56 million ($5.78 million).

The use of the software was discontinued when Co-op adopted a uniform core banking platform, which is now being implemented.

In its 2021 annual report, the bank said it increased its capital in its South Sudan operations to Ksh2.64 billion ($22.75 million) from Ksh2.27 billion ($19.56 million).

 

“The Co-operative Bank of Kenya Limited injected additional capital of Ksh372 million ($3.2 million) into Co-operative Bank of South Sudan in 2021,” the report states.

In 2013, Co-op Bank, which is 64.6 percent owned by co-operative societies in Kenya, invested Ksh2.27 billion ($19.56 million) for a 51 percent stake in its South Sudan subsidiary. The remaining 49 percent is held by the government of South Sudan through a joint venture agreement.

Last year, Co-op Bank extended the joint venture by three years. The lender said the planned transfer of the minority stake to the South Sudanese Co-operative movement had been delayed by economic and political challenges in the country.

The subsidiary’s only profit came in 2015, at Ksh849.72 million ($7.32 million).

Hyperinflation

According to the International Accounting Standards 29 Financial Reporting in Hyperinflationary Economies, from 2016, the South Sudanese economy was considered to be hyperinflationary.

The country’s civil war, from 2013 to 2020, led to a massive write down of assets, loss of revenue and hyperinflation. This resulted in banks reporting losses due to reassessment of assets and liabilities.

The seven years of fighting led to the collapse of oil production in areas affected by the war.

KCB started operations in the country in 2006, Equity in 2009 and Co-op Bank in 2013.

In 2014, KCB shut three branches in South Sudan after the war broke out. In 2017, Equity Bank closed seven of its 12 branches in the country.

ShareTweetSend
Previous Post

Co-operative Bank offers best solutions for back to school

Next Post

Saccos to share Sh3.8b Co-op Bank dividend cheque

Related Posts

Co-op Bank receives Sh14.15bn to lend to MSMEs

Co-op Bank named SME Financier of the Year in Africa

September 20, 2023
Mason dies after falling from 10th floor in Pangani

Two foreigners lose Sh132m in a Mombasa Hotel

September 20, 2023
Next Post
Co-op Bank, IFC partner in health equipment funding

Saccos to share Sh3.8b Co-op Bank dividend cheque

Leave a Reply

Your email address will not be published. Required fields are marked *

Continue Reading

Co-op Bank receives Sh14.15bn to lend to MSMEs

Co-op Bank named SME Financier of the Year in Africa

by Star Today
September 20, 2023

The Co-operative Bank of Kenya has been named SME Financier of the Year in Africa by the International Finance Corporation at...

Mason dies after falling from 10th floor in Pangani

Two foreigners lose Sh132m in a Mombasa Hotel

by Star Today
September 20, 2023

Police in Mombasa are investigating an incident where electronics belonging to two foreigners went missing in a hotel room where...

Co-op Bank records 47% jump in Q3 net profit

Gideon Muriuki restores his 2% stake at Co-op Bank

by Star Today
September 13, 2023

Co-operative Bank of Kenya’s chief executive, Gideon Muriuki, bought 14.6 million shares of the lender currently worth Sh173 million in...

Old Mutual turns to one-stop financial solutions model to grow clientele

Old Mutual turns to one-stop financial solutions model to grow clientele

by Star Today
September 13, 2023

 Old Mutual Kenya (OMK) has opened a second full-suite branch in the coastal city of Mombasa, as part of a...

Recent News

  • Co-op Bank named SME Financier of the Year in Africa
  • Two foreigners lose Sh132m in a Mombasa Hotel
  • Gideon Muriuki restores his 2% stake at Co-op Bank

Category

  • Business
  • Health
  • Investigation
  • News
  • Opinion
  • Politics
  • Star Today

© 2023

No Result
View All Result
  • Home
  • News
  • Business
  • Politics
  • Investigation
  • Health
  • Opinion

© 2023