Co-operative Bank has extended its joint venture with the government of South Sudan by three years.
The extension renews the parties’ co-ownership of the Bank’s subsidiary headquartered in Juba.
In a virtual annual general meeting, Chief Executive Officer Gideon Muriuki said the 49 per cent shareholding held by the government of South Sudan was to be transferred to co-operative societies but peace process delayed the transfer.
“The 49 percent shareholding held by the government of South Sudan was to be transferred to the co-operative societies in South Sudan but the peace process, the performance of that economy has taken time to stabilise and we have extended that period by another three or so years,” he said.
The government of South Sudan was to hold the stake in trust for three years after which it will hand over the stake to the co-operative movement developed in the country.
Co-op Bank partnered with South Sudan to provide relevant and innovative financial services.
Kenya’s Co-operative Bank took up a 51 per cent stake in its South Sudan subsidiary with the South Sudan Government holding the remaining 49 per cent stake.
The patnership entailed a greenfield joint venture worth 1.2 billion shillings ($15 million).
“The majority stake gives us control of the subsidiary and we will be responsible for the management of the bank,” said Muriuki.
Co-operative Bank is using South Sudan as a case study to guide its planned expansion into Tanzania, Rwanda and Uganda.
