The recent action by Bank of Uganda (BoU) to take over the management of Imperial Bank Uganda has put the spotlight on regional banks operating in Uganda. Of the 25 banks operating in Uganda, five are Kenyan. While some are giving the indigenous and international banks a good run for their money, some have continued to struggle in a very competitive and tight market. Some analysts attribute this to being over ambitious but Bank of Uganda says there is no difference in performance between Kenyan and other banks operating in Uganda.
Kenyan banks based their entry in Uganda on the financial strength of their mother companies back home, proximity to Uganda and the fact that both countries are regional partners in the East African Community where free movement of goods and services is highly promoted to quicken the regional integration process.
Besides Kenya Commercial Bank (KCB Bank) and Equity Bank, which entered the Uganda financial market much earlier, the more recent entrants that include NC Bank, Imperial Bank, Commercial Bank of Africa are finding out that making their presence felt is a herculean task. To make matters even worse, Imperial Bank operations were taken over by BoU but on account of events happening across the border to its mother company.
Read More at Tough market for Kenyan banks
