Tag: Gideon Muriuki News

Co-op Bank teams up with eco.business Fund to finance sustainable agriculture in Kenya

Posted on by Kibaki Muthamia

The eco.business Fund has provided its first investment in Kenya in the amount of $10 M to Co-op Bank.

The subordinated loan will be on-lent to sustainable agribusinesses, contributing to the fund’s mission of conserving biodiversity, promoting the sustainable use of natural resources, and mitigating and adapting to climate change.

The investment will provide much-needed financing for businesses to enhance sustainable measures in their agricultural practices, particularly important in light of the challenging operating environment created by the COVID-19 crisis.

Agriculture is the backbone of the Kenyan economy, employing approximately 75% of the rural population, and making up 34% of the country’s gross domestic product.

However, commercial lending to the agricultural sector remains disproportionally low. This funding gap limits the ability of producers and processors to invest in sustainable production practices, further compounded by the economic fallout caused by the global pandemic.

The investment aims to provide financial resources to those that need it most, while simultaneously promoting conservation finance as mainstream.

Co-op Bank is the third largest commercial bank in Kenya, and the primary bank for agricultural cooperative societies.

Through this new investment, the eco.business Fund and Co-op Bank will provide necessary credit to sustainably certified agribusinesses, such as those in the coffee, tea, and horticulture sectors, Kenya’s main agricultural exports.

By financing green measures such as solar and hydroelectric installations for tea factories that reduce reliance on fuelwood, and cold storage solutions that reduce post-harvest losses, the partners hope to boost sustainable production practices and conserve the unique ecological landscape of the country.

Dr. Jens Mackensen, Chairperson of the Board of Directors of the eco.business Fund, stated:

“We are excited about our fist investment in Kenya: A country rich in biodiversity and opportunities for sustainable development. This new partnership with Co-op Bank promises to be a fruitful one as the bank is well positioned to act as an enabler of sustainable production practices. Only by providing tailored financing to the agricultural sector, a key driver of economic activity and sustainable development in Kenya, can we collectively promote green finance with the goal of generating positive environmental and social impact.”

Commenting on the sign-off of this partnership, the Group Managing Director and CEO of Co-op Bank Dr. Gideon Muriuki said:

“Right from our founding as a bank for agriculture co-operatives, we have always strived to support farmers in their journey to achieve sustainable livelihoods. This new partnership with eco.business Fund that makes available USD 10 Million for on-lending to farmers is a winner on many fronts; it provides financing that is structured to suit the financing cycles of agriculture, and also comes with the support mechanisms to assist farmers to make a successful pivot towards sustainable, climate-smart agriculture.”

Co-op Bank and Super Group deepen leasing partnership

Posted on by David Kingsley

The Co-operative Bank of Kenya together with leading leasing company Super Group of South Africa have reiterated their commitment to deepen the partnership in the local leasing business, through the joint venture firm owned by the two institutions named Co-op Bank Fleet Africa Leasing Limited.

(L-R) The Chairman, Co-operative Bank John Murugu, Fleet Global Chief Operating Officer Super Group, Philip Smith and Group Managing Director and CEO Co-operative Bank Dr. Gideon Muriuki sign-off the joint venture strategic partnership arrangement in leasing business, witnessed by Company Secretary Co-operative Bank Samuel Kibugi (standing).
(L-R) The Chairman, Co-operative Bank John Murugu, Fleet Global Chief Operating Officer Super Group, Philip Smith and Group Managing Director and CEO Co-operative Bank Dr. Gideon Muriuki sign-off the joint venture strategic partnership arrangement in leasing business, witnessed by Company Secretary Co-operative Bank Samuel Kibugi (standing).

The strategic partnership between Co-op Bank and Super Group is intended at penetrating and growing a modern leasing business aiming at market leadership, securing long-term partnerships and joint ventures to sustainably support growth, building on world-class competencies in the supply chain, fleet management, and dealerships, and providing customers with innovative leasing solutions.

Co-op Bank Fleet Africa Leasing Limited, known in short as ‘’Co-op Bank Fleet’’ has within a short time since its establishment moved to stamp its presence in the leasing space, is a joint venture of two major players who bring to the table complementary capabilities in leasing.

Super Group of South Africa delivers its proven expertise in customer screening, product structuring, and risk management as Co-op Bank makes available it’s excellent client base to whom leasing is critical such as SMEs, Co-operatives and the Public Sector.

A truck branded with Supergroup logo
A truck branded with Supergroup logo

“Co-op Bank Fleet’’ already got off to a roaring start by concluding its first leasing deal worth over Ksh890 million in January of this year. This maiden transaction, which is part of a larger Ksh2.2 billion deal, entails the financing and delivery of a fleet of 125 vehicles to the Ministry of Interior.

Also read: 5 reasons why the MCo-op Cash app is the best first resort when you’re in a tight financial spot

The Co-operative Bank was the financier, with Co-op Bank Fleet arranging the leasing in collaboration with motor vehicle dealers Isuzu East Africa Limited who are to deliver the fleet made up of trucks, pickups, and buses.

“Super Group Limited is an established global leader in leasing business operating in three continents and is listed on the Johannesburg and Sydney stock exchanges. This partnership between Co-op Bank and Super Group continues to deliver mutual benefits as it taps the synergies created by the joint venture,” said Co-operative Bank Group Managing Director and CEO Dr. Gideon Muriuki.

Co-op Bank CEO Gideon Muriuki
Co-op Bank CEO Gideon Muriuki

“Co-op Bank Fleet enables the bank to better support customers to acquire the assets, technologies, and equipment they require at the same time enable the bank to diversify its income streams,” added Dr. Muriuki adding that Co-op Bank Fleet enables the bank to better support customers to acquire the assets, technologies, and equipment they require at the same time enable the bank to diversify its income streams.

Co-op Bank partners with WorldRemit for quick digital money transfers to Kenya

Posted on by David Kingsley

Co-operative Bank of Kenya has partnered with leading digital money transfer company WorldRemit to enable digital money transfers to over 6 million Co-operative Bank accounts and 150 new cash pickup locations nationwide.

Using the WorldRemit app or website, Kenyans living in over 50 diaspora countries can now send money directly to their loved ones personal Co-op Bank accounts in over 150 branches. The transfers can be made directly from the senders mobile phones, and the receiver can withdraw the funds from a nearby Co-op Bank Agent, ATM or Branch.

Co-operative Bank Retail and Business Banking Division Director Arthur Muchangi (left) and Head of Business Banking Moses Gitau
Co-operative Bank Retail and Business Banking Division Director Arthur Muchangi (left) and Head of Business Banking Moses Gitau

WorldRemit saves customers time and money, enabling them to send funds home in a few taps from their phones without having to visit a bricks and mortar agent. Customers sending to Kenya can choose from a variety of convenient pay-out options including bank transfer, cash pickup, mobile money and mobile airtime top up.

Over 3 million Kenyans live abroad, with top senders to the country including the United Kingdom, the United States, and Australia. The World Bank estimates that in 2018 the Kenyan diaspora sent $2.7 billion in remittances, now the countrys top foreign exchange earner exceeding tea, coffee, and tourism.

Many Kenyans in the diaspora support family and relatives here at home to fund basic needs including education, food, housing and access to healthcare. According to recent WorldRemit research based on national household survey data, Kenyans abroad contribute over $300 million to childrens education nationally. Receiving remittances halves a Kenyan childs chances of being out of school.

Mr. Arthur Muchangi, Director Retail Banking at Co-operative Bank of Kenya confirmed the banks commitment to support remittances.

“As a bank that handles some of the largest volumes of remittances to Kenya, Co-op Bank will continue to invest in partnerships that provide Kenyans in the diaspora with the most affordable and secure means of transferring their funds home for domestic support, savings and investment.

“Co-operative Bank has a dedicated Diaspora Banking Center that is available 24/7 to serve diaspora clients irrespective of time zones, the first of its kind in Kenya,” he explained.

Sharon Kinyanjui, Head of East and Central Africa at WorldRemit said, “Kenyans around the world make WorldRemit their top choice when it comes to sending money home.

“We are delighted to partner with Co-operative Bank of Kenya, a trusted household name with strong ties to the diaspora and a shared commitment to financial inclusion, to further expand our network in the country and make our convenient service accessible to all.”

Visit the WorldRemit or Co-operative Bank websites for more information on how to send money to Kenya.

Co-operative Bank CEO/Managing Director Gideon Muriuki

Co-op Bank registers Ksh5.1 billion profit in first quarter of 2019

Posted on by David Kingsley

Co-operative Bank Group has registered a pre-tax profit of Ksh. 5.1 billion for the first quarter of 2019 compared to Ksh. 4.9 billion recorded in the first quarter of 2018.

This is a steady growth of 4.4 per cent against the backdrop of a challenging economic environment in the period. Profit after tax was Ksh 3.6 billion compared to Ksh 3.4 billion in the previous year.

The group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties; which has progressively deepened the Financial Inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya.

Cooperative Bank Group MD Gideon Muriuki (right) and Chairman Stanley Muchiri

The total non-interest income increased by 19.1 per cent from Ksh. 3.5 billion to Ksh. 4.2 billion with interest income from government securities increasing by 39.6 per cent from Ksh. 2.0 billion to Ksh. 2.8 billion.

The operating income grew by 1.7 per cent from Ksh. 10.9 billion to Ksh. 11.1 billion while total operating expenditure decreased by 1.2 per cent from Ksh. 6.1 billion to Ksh. 6.0 billion as a result of prudent cost management strategy and enhanced efficiency.

Assets grew by Ksh. 27.9 Billion (+7 per cent) to Ksh. 425.7 billion compared to Ksh. 397.8 billion in the same period last year.

Net loans and advances book remained relative stable at Ksh. 251.6 billion.

Investment in government securities grew by Ksh 29.0 billion (+38.6 per cent) to Ksh. 103.9 billion compared to Ksh. 75.0 billion in first quarter of 2018.

Customers’ deposits grew by 7.4 per cent from Ksh. 295.9 billion to Ksh. 317.8 billion.

Borrowed funds from development partners grew by Ksh. 3.1 billion (+14.9 per cent) to Ksh. 23.7 billion compared to Ksh. 20.7 billion in the same period the previous year.

Shareholders’ funds grew from Ksh. 67.9 billion to Ksh. 72.8 billion.

The bank closed the quarter with a sound capital base, with adjusted total capital against total risk-weighted assets standing at 16.5 per cent, which is 2.0 per cent above the statutory minimum of 14.5 per cent.

Also read: 5 reasons why the MCo-op Cash app is the best first resort when you’re in a tight financial spot

Through its multi-channel strategy, the Bank has successfully moved 88 per cent of all customer transactions to alternative delivery channels that include self-service kiosks in 155 branches, an expanded 24-hour contact centre, mobile banking, 585 ATMs, internet and over 11,600 Co-op Kwa Jirani banking agents.

A successful universal banking model and the implementation of sales force effectiveness has seen the Group serve 8.2 million account-holders across all sectors.

Key focus on digital banking, with the all-telco Mco-op Cash mobile wallet continuing to play a pivotal role in the growth of non-funded income with over 4.3 million customers registered and 1.2 million loans worth over Ksh. 5.1 billion disbursed as at the close of Q1 2019.

Over 26,800 customers have taken up the rolled out MSME packages that Co-op Bank launched in 2018 and 1600 have been trained on business management and planning.

The bank has earmarked Ksh. 15.2 billion for MSME lending and to date we have disbursed Ksh. 3.2 billion under the program.

These include 24,167 mobile unsecured business e-loans and 450 supply-chain loans disbursed in Q1 2019 alone.

Co-op Bank’s unique model of retail banking services through Sacco FOSAs has enabled it to provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards.

Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51 per cent and GOSS 49 per cent) made a profit before tax of Ksh. 1.7 million in Q1 2019, which was 28.7 per cent higher than Ksh. 32.4 million posted in 2018.

Co-op Bank Foundation has also provided scholarships for gifted but needy students from all regions of Kenya. The sponsorship includes; fully-paid secondary education, full fees for university education, internships and career openings for beneficiaries.

The foundation is fully funded by the bank and has so far supported 7,689 students since the inception of the program.

Co-op Bank Headquarters
Co-op Bank Headquarters

Co-op Bank organizes workshop for CEOs to discuss technology and innovation for sustainable development

Posted on by David Kingsley

Co-operative Bank, through its subsidiary, Co-op Consultancy & Insurance Agency on Thursday concluded its Annual National Co-operatives workshop where CEOs from across the country deliberated key issues concerning the industry.

The workshop themed Co-operatives Tomorrow: Technology and Innovation for Sustainable and Inclusive Development was presided over by the PS State Department for Co-operative Development, Mr. Ali Noor Ismail, who in his keynote speech highlighted the importance of leveraging technology in Co-operatives to spur innovation.

Speaking at the workshop, Mr. Noor Ismail explained that co-operatives are operating smarter today than they did in the past due to the adoption of technology.

“With adoption of technology in Co-operatives, we have seen new types of products introduced that meet more specific needs of members, improve liquidity in Saccos and even yield better margins for Co-operatives,” he stated.

Co-op Bank Director, Co-operatives Division, Mr. Vincent Marangu (left) with Mr. Noor Ismail, Principal Secretary State Department for Co-operative Development

The three-day workshop focused on engaging the CEOs on how to revolutionize their societies and operate within the competitive business environment with the constantly changing market dynamics. The bank’s subsidiary Co-op Consultancy’s main role is to enhance the institutional capacities of co-operative societies, who are the core stakeholders of the bank.

Speaking at the workshop, Coop Bank Director Co-operatives Division, Mr. Vincent Marangu stated that the bank facilitates such workshops every year to create an environment where co-operatives can  deliberate, share learnings and build each other.

“We understand that organizations are faced with numerous institutional challenges which they must address in order to attain their goals in the dynamic business environment in the country,” he said.

This year’s workshop covered a wide range of topics such as building technological capabilities in Co-operatives which will help the participants think strategically about technology beyond adoption and managing the associated risks. It had a panel discussion focusing on three key areas, building capacity in terms of strategy, governance and security.

It also covered demystifying digital transformation in Co-operatives; many Co-operatives have carried out system changes and adopted new technologies but they are not fully digital. The session gave a breakdown what digital transformation is and demonstrate what the Co-operatives need to do to achieve it. They also covered management and expansion of the Agricultural value chain, this session challenged the participants to think further on what they can do to expand their value chain and introduce new alternatives to their existing business models.

The Co-operatives CEOs  also covered managing technology partnership, leadership and coaching and the Impact of the Proceeds of Crime and Anti Money Laundering Act (PoCAMLA) to bring on board Deposit-taking SACCOs into mandatory reporting of large transactions in respect to prevention of money laundering and combating the financing of terrorism.

This workshop is one of several trainings offered to Co-operatives by Co-operative Bank, through Co-op Consultancy & Insurance Agency, to help them in capacity building, development and growth.

The vibrant and dynamic co-operative movement in Kenya is a key player in the economy, controlling about over 40 per cent of Kenya’s gross domestic product (GDP).

The Co-operative Societies in Kenya employs more than 500,000 people, besides providing opportunities for self-employment to many more. Savings and credit societies (SACCOs), the fastest growing sub-sector in the movement, controls over 30 percent of national savings.

Co-operative House, Headquarters of the Co-operative Bank of Kenya

Co-op Bank sponsors its customers to China for business exposure

Posted on by David Kingsley

Co-operative Bank, through its MSME offering, has taken customers to Shanghai and Yiwu in China for a business networking trip. The trip will enable customers to create linkages for overseas business and build partnership opportunities as well as purchase various items at a highly discounted costs which will enable them to pass the discounts to their customers making their products competitive.

Also read: Isuzu East Africa & Co-operative Bank announce ‘daily repayment’ asset finance scheme

The customers, drawn from across the country, will tour China, specifically Shanghai and Yiwu. In Shanghai, they will visit one of the world’s busiest shopping streets, Nanjing and in Yiwu, they will visit Futian Market which is the biggest hub in China for all kinds of products. It is divided into 5 districts, each with various sections selling specific products. In this trip, the customers will get to meet suppliers of electric appliances, electronics, hardware tools & fittings, telcom equipment, vehicles and many others.

They will further visit markets for office supplies, sports equipment, stationery, cosmetics, beauty/salon equipment, fashion accessories, beddings, curtains, fabrics, auto & motorcycle accessories, hair ornament & jewellery, festival arts and decorative arts.

Speaking about the business trip, Coop Bank Head of Business Banking, Mr Moses Gitau said it will be instrumental to all the business customers who will travel as they will create linkages for overseas business and partnership opportunities.

Co-operative Bank's Arthur Muchangi and Moses Gitau
Co-operative Bank’s Arthur Muchangi and Moses Gitau

“From our engagement with various business customers, we know that their business needs go beyond finance; they also need exposure and networking opportunities with business practitioners, in Kenya and beyond the border especially in successful countries like China,” he stated.

Later this year, in October, the bank will organize another business networking trip to Guangzhou for the 126th Canton Fair. This is the largest trade fair in China with the largest assortment of products, largest attendance and with the largest number of deals made at a fair. It is a unique experience where participants get to mix business with leisure. This trip is open for all business customers looking to travel to China for business.

Also Read: Co-op Bank will finance and help you import your dream car, here’s how

Co-operative Bank recently revamped its MSME offering and now has an arm in the bank which deals specifically with non-financial services for its MSME business banking customers. The bank retooled and refreshed the product offering to make it more responsive to the needs of MSMEs. They have made available a substantial kitty of Ksh. 15.2 billion for a package of loans that include an unsecured business loan, a first of its kind in Kenya, E-Credit through our MCo-op Cash App where businesses are able to borrow up to Ksh. 2 million via their mobile phone, packaged insurance cover which are handpicked and specifically negotiated to suit various segments under MSME, revised and pre-approved limits on overdrafts and loans.

The loans will be supported by trade services that include Letters of Credit, guarantees, supply chain financing, among others. These services are available at all Cooperative Bank branches across the country. The vision for this revamped MSME offering from Coop Bank is to grow world class entrepreneurs beyond the Kenyan borders.

Cooperative Bank Group MD Gideon Muriuki (right) and Chairman Stanley Muchiri

Isuzu East Africa & Co-operative Bank announce ‘daily repayment’ asset finance scheme

Posted on by David Kingsley

Wednesday 27th March 2019, Nairobi: Leading local vehicle assembler Isuzu East Africa (Isuzu EA) and Co-operative Bank of Kenya, have today announced a daily repayment asset finance partnership that seeks to address financial challenges faced by customers who reconcile their profits and losses daily.

The partnership, which is the first ever in Kenya, offers customers an option to repay their loans on a daily basis and is expected to take away the anxiety of an expected huge amount payment required at the end of the month, making it of the easiest and most affordable way to own Isuzu pickups and trucks.

Speaking on this development, Isuzu EA Managing Director Rita Kavashe noted that this program provides an opportunity for daily reconciliation customers to invest and grow their businesses.

“Our decision to partner with Coop Bank was informed by their business DNA, dealing with our customer base, the SMEs, their deep understanding of customer cash generation; and experience with SME customers’ business cycles. Today, we are happy to announce to a partnership that will see SMEs enjoy a raft of benefits,” said Rita.

“We strongly believe that this partnership will enable SMEs grow their business without affecting their cash flow,” added Rita.
Co-operative Bank Director for Retail & Business Banking, Mr. Arthur Muchangi emphasized the need for SMEs to take this opportunity to re-tool and renew their motor vehicle fleet at very affordable terms.

“Our message to customers is simple; if you desire to purchase an Isuzu bus, an Isuzu truck or a pick-up such as the famous D-Max, this is the best time. Through this partnership between Isuzu and Co-op Bank, customers will get up to 95% financing to purchase the vehicle of their choice, and in addition be given a whole two months to use the vehicle before they begin repaying the loan. This will give customers space to generate cash to service the loan, which is to be repaid over an extended period of five years every day. For those Isuzu customers who also wish to boost the working capital of their business, we are providing an additional loan of Ksh 300,000 to be repaid in 12 months,” said Mr. Muchangi.

Mr. Muchangi added that the offer comes with a most reasonably-priced comprehensive insurance package priced at 4.75% of vehicle value (that includes Political Violence & Terrorism). In addition, Insurance Premium Finance is available to allow customers pay insurance premiums in easy instalments.

Isuzu EA Managing Director Rita Kavashe noted that the partnership with Co-op Bank was crucial, adding that Isuzu EA aims to make it easier for SMEs to access financing for their Isuzu products that SMEs strongly rely on to build, grow and sustain their businesses.

“Last year, we ran a series of ground activations to understand customer needs and expectations. And we took note of a group of customers that have a different business operation system that runs on a daily reconciliation system. We therefore took it upon ourselves to develop an innovative partnership that will benefit them and enable them to grow their business exponentially. For example, with 95% financing and 60 months repayment period, the daily repayment for an Isuzu D-Max pick-up is only Ksh 2,577,” explained Rita.

This new and innovative partnership is targeted to help farm produce traders at Marikiti, meat traders from Burma market, hardware store owners, mitumba traders, upholstery traders from Kamukunji and Gikomba market areas.
In the partnership, Isuzu customers are set to enjoy Ksh 300,000 working capital to empower their business payable in 12 months, a 60-day repayment holiday that will allow SMEs to generate monthly instalments, the lowest market negotiation fee of one per cent and the longest re-payment period of 60 months in the market.

Co-operative Bank records Ksh 18.2 billion profit in 2018

Posted on by David Kingsley

The Co-operative Bank Group is delighted to report a Profit before Tax of Kshs 18.2 billion for Full Year 2018 compared to Kshs 16.4 billion recorded in 2017, an impressive growth of 11% against the backdrop of a challenging operating environment in the period. Profit after Tax was Kshs 12.7 billion compared to Kshs 11.4 billion in the previous year.

Our operating model has equipped the business with added resilience to achieve the set strategic objectives, as reflected in the commendable performance in the period under review.

The Group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties, which has progressively deepened our celebrated Financial Inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya.

Key financial highlights include;-
1. Profit & Loss
• Total interest income improved by 7% from Kshs 40.37 billion to Kshs 43.02 billion on account of; Interest income from government securities increasing by 19% from Kshs 8.21 billion to Kshs 9.79 billion and Interest income from loans & advances increasing by 3% from Kshs 31.94 billion to Kshs 32.95 billion.
• Total interest expense remained under tight control, falling by Kshs 300 million from Kshs 12.27 billion to Kshs 12.24 billion. This was despite a 7% growth in deposits indicating improved management of the cost of funds.
• Total operating income grew by 5% from Kshs 41.6 billion to Kshs 43.68 billion.

2. Balance sheet
• Total assets grew by Kshs 26.5 billion (+7%) to Kshs 413.41 billion from Kshs 386.86 billion recorded at the close of year 2017.
• Net loans and advances book declined marginally (-3%) to stand at Kshs 245.41 billion compared to Kshs 253.86 billion in 2017.

• Investment in Government securities grew by Kshs 11.03 billion (+16%) to Kshs 80.27 billion compared to Kshs. 69.24 billion in 2017.
• Customers deposits grew by 7% from Kshs. 287.37 billion to Kshs 306.12 billion
• Borrowed Funds from development partners grew by Kshs 2.79 billion (+13%) to Kshs 23.95 billion compared to Kshs 21.16 billion in 2017.
• Shareholders’ funds grew to Kshs 69.86 billion in 2018 that enables the bank to continue to pitch for big ticket deals.

3. Innovative Customer Delivery Platforms
• Through our multi-channel strategy, the Bank has successfully moved 91% of all customer transactions to alternative delivery channels that include self-service kiosks in 155 branches, an expanded 24-hour contact centre, mobile banking, 580 ATMs, internet and over 11,000 Co-op Kwa Jirani banking agents.
• A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve over 8 million Account-holders across all sectors.
• Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with 4 Million customers registered.
• Our unique model of retail banking services through Sacco FOSAs enabled us provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards.

4. Regional Expansion
Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit before tax of South Sudanese pounds (SSP) 897.3 Million in 2018 which was 368% higher than SSP 192 Million posted in 2017. This performance however translated to a monetary loss of Kshs 16.4 million in 2018 attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudanese pound.

5. Corporate Social Investment
Co-operative Bank Foundation has provided Scholarships for gifted but needy students from all regions of Kenya. The sponsorship includes; fully-paid secondary education, full fees for University education, Internships and career openings for beneficiaries. The Foundation is fully funded by the bank and has so far supported 7,002 students since inception.

6. Accolades
The Group was recognised by Banker Africa, East Africa Awards 2018 with three key awards, namely the Best Retail Bank in Kenya, The Best SME Bank in Kenya and the Best Investment Institution in Kenya. This is a re-affirmation of the bank’s unique position as a bank that positively influences the lives of the majority of Kenyan citizens.

The Group was also recognized by Europe Middle East & Africa Finance (EMEA Finance) – African Banking Awards 2018 as the Best Bank in Kenya and Best Product Launch in Africa (MCo-op Cash v4.0 update) while International Finance recognized the bank with Best Retail Bank in Kenya and Best Banking CEO, Kenya for Dr. Gideon Muriuki.

7. Dividend

The Board of Directors has recommended for approval by the AGM the payment of a dividend of Kshs. 1.00 per every ordinary share held subject to approval by the Capital Markets Authority. This will represent a growth of 25% compared to a dividend of Kshs 0.80 paid in 2017.

Conclusion

The Co-operative Bank Group will continue to deliver strong performance as we focus on the growing 8 million account-holder base, digital banking, the basket of innovative financial solutions, efficient delivery of services and multichannel access to retain market position and deliver business growth and profitability in the days ahead.

DR. GIDEON MURIUKI – CBS, MBS
GROUP MANAGING DIRECTOR & CEO