Kenya’s Coop Bank has pumped an additional capital of KSh372 million to its South Sudan subsidiary. In its eight years of operation, the subsidiary has accumulated losses of KSh3.29 billion.
The subsidiary commenced operations in September 2013, and runs four branches. It made a loss of KSh484.41 million in 2021, from a loss of KSh1.56 billion in 2020.
The lender says it has also written off a cost incurred to implement a new software amounting to Ksh671.56 million.
In its 2021 annual report, the lender said it increased its capital in its South Sudan operations to KSh2.64 billion from KSh2.27 billion.
In 2013, Coop Bank, which is 64.6% owned by co-operative societies in Kenya, invested KSh2.27 billion for a 51% stake in its South Sudan subsidiary. The remaining 49% is held by the government of South Sudan through a joint venture agreement.
The subsidiary’s only profit came in 2015, at KSh849.72 million.