Co-operative Bank Managing Director Gideon Muriuki: The bank has commenced operations in South Sudan with plans to roll out branches in the country’s ten states Photo/File
Co-operative Bank will next week open its first foreign subsidiary in South Sudan as lenders race to reduce reliance on the Kenyan market.
Mr Gideon Muriuki, the CEO, Thursday said the bank opened the first branch in Juba on September 17 and will spread its reach to 10 states in Africa’s newest country.
South Sudan is one of the most lucrative markets in the East African region where Kenyan banks target to take advantage of low penetration of financial services.
Central Bank of Kenya data show that the 11 banks with subsidiaries in the region had a combined pre-tax profit of Sh5.1 billion last year, up from Sh2.3 billion in 2011.
Co-op Bank is set to replicate in South Sudan its model of partnerships with co-operative societies that has given it access to Kenya’s 12,000 saccos and their 10 million customers.
The bank has taken a 51 per cent stake in a joint venture with the government of South Sudan, which is expected to transfer the 49 per cent stake to the co-operatives after three years.
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