The Co-operative Bank of Kenya has put on hold its previous plans to venture into new markets such as Uganda, Ethiopia and Rwanda but invest aggressively in the Kenyan market over the next five years.
According to the lender which operates in Kenya and South Sudan, it is yet to maximise opportunities in the Kenyan market which remains the most profitable for homegrown lenders.
“We realised we are strong here and even as we are looking at opportunities in other countries within the region, we appreciated that (adding more branches in various parts of Kenya is of greater priority),” Co-operative bank Group managing director and CEO Gideon Muriuki said at the company’s virtual AGM held on Thursday last week.
“We have done very well in terms of being able to deepen ourselves in market segments that we are already in.”
Mr Muriuki said that Co-op Bank’s recent acquisition of Jamii Bora Bank is part of the ongoing local expansion, adding that the new subsidiary is expected to return to profitability from next year.
The regional expansion strategy is driven by a quest to diversify and get a presence in markets where uptake of banking services is low compared to Kenya.
The bank was recently named as the best bank in the country at this year’s African Banking Awards 20202 organised by by EMEA Finance.
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