Co-operative Bank has injected additional capital of Sh372 million ($3.2 million) to its subsidiary in South Sudan.
The unit has accumulated losses of Sh3.29 billion ($28.36 million) in its eight years of operation.
It made a loss of Sh484.41 million ($4.17 million) in 2021 up from a loss of Sh1.56 billion ($13.44 million) in 2020.
In its 2021 annual report, the bank said it increased its capital in its South Sudan operations to Sh2.64 billion ($22.75 million) from Sh2.27 billion ($19.56 million).
“The Co-operative Bank of Kenya Limited injected additional capital of Sh372 million ($3.2 million) into Co-operative Bank of South Sudan in 2021,” the report states.
The Nairobi Securities Exchange-listed lender said it also wrote off the Sh671.56 million ($5.78 million) cost of implementing a new software.
Use of the software was discontinued when Co-op introduced a unified core banking platform, which is now being implemented.
The Juba-based subsidiary commenced operations in September 2013 and runs four branches.
In 2013, Co-op Bank, which is 64.6 per cent owned by co-operative societies in Kenya, invested Sh2.27 billion ($19.56 million) for a 51 per cent stake in its South Sudan subsidiary. The remaining 49 per cent 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.
