Co-op Bank and eco.business Fund join forces to boost agribusiness in Kenya

KENYA – Co-operative Bank of Kenya, a tier one lender in Kenya, has secured US$10 million loan from eco.business Fund, a Luxembourg-based impact investment fund for on-lending to agribusinesses. The Nairobi Securities Exchange listed lender said it had received the subordinated loan from eco business Fund and will extend the same to sustainable agribusinesses, such as those in the coffee and tea. The facility marks the first investment in Kenya for eco-business Fund, a specialist in promoting use of natural resources, and mitigating and adapting to climate change. Co-op Bank chief executive…

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Co-operative Bank of Kenya secures US$75m loan from IFC for SME lending

KENYA – International Finance Corporation (IFC), the private sector arm of the World Bank has given Co-operative Bank of Kenya US$75 million loan for onward lending to micro, small and medium-sized (MSMEs) firms crippled by the Covid-19 pandemic. The Kenyan lender announced that the International Finance Corporation (IFC) loan will come in as a tier II supplementary capital and will be repaid within seven years. Co-operative Bank Chief Executive Officer Gideon Muriuki said the money will support MSME customers to cope with the disruptions brought about by the pandemic. “The funding…

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Co-op Bank half year net profits drops by 3.6% due to COVID-19 pandemic

KENYA – Co-operative Bank, a commercial bank, has announced that its half-year net profits have dropped by 3.6 per cent to KSh7.2 billion (US$66.56m) on account of higher loan loss provisioning in a Covid-19 environment. This happened despite an increase in revenue from mainstay lending business. Net earnings dropped from KSh7.5 billion (US$69.34m) posted in a similar period last year, making Co-op the latest top lender to post a drop in profit on increased provisioning for bad debts linked to the infectious virus that struck Kenya mid-March. Net interest income…

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CIC Insurance group records a US$3.1m loss in half year of 2020

KENYA – CIC Insurance Group, which specializes in the provision of insurance services to the co-operatives sector, has made a KSh335.5 million (US$3.1m) net loss in the half year ended June, reversing a net profit of KSh20.9 million the year before. This came as investment income fell 25.9 percent to KSh1.2 billion (US$11.08m) in a period when the Covid-19 pandemic pulled down share prices on the Nairobi Securities Exchange and returns on fixed income investments like bank deposits and T-bills. The insurers’ bottom-line was also hurt by a 7.6 percent…

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Co-op Bank donates US$0.94m to Covid-19 Emergency Response Fund

KENYA – Co-operative Bank of Kenya has donated KSh100 million (US$0.94m) to the private sector-led Covid-19 Emergency Response Fund that was set up recently to gather resources for fighting the spread and impact of the virus. The lender’s managing director Gideon Muriuki said the cash contribution is in recognition of the need by corporates and individuals to put resources together to source for critical medical supplies and equipment such as ventilators. This is the first corporate financial institution to act towards fighting Covid-19 in Kenya. “This is a critical moment…

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Co-op Bank set to launch five new branches targeting the underserved regions

KENYA – The Co-operative Bank of Kenya (Co-op) is planning to open five new branches in various towns in the country despite the industry’s growing focus on digital banking channels. The new branches will be based in Nairobi, Kapenguria, Maralal and Chogoria making Co-operative bank’s physical outlets 160 in number. In Nairobi, Co-op Bank will add two more branches — one along Kenyatta Avenue at Standard Building and another at the upcoming Parliament tower. The soon to be opened Kenyatta Avenue branch is undergoing final touches, with branding having been…

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