Co-operative Bank aggressive expansion in the Kenyan market saw the lender open it’s third branch in Eldoret town.
The new branch in Eldoret brings to 156 the total Co-op Bank branches in Kenya following another four branches in South Sudan.
“We continue to leverage digital tools to deliver full service banking to customers, while at the same time optimise our branch network by opening new branches at carefully selected outlets identified through rigorous market research.” Dr Gideon Muriuki, Group Managing Director & CEO, Co-op Bank.
In its new five-year strategic plans, the lender says it plans to maximise opportunities in the Kenyan market, which remains the most profitable for homegrown banks.
“We believe there is no one single channel that will displace all others, rather, it’s the investment in an optimal and balanced multichannel strategy that will offer a fulfilling experience to the customer,” he said.
Unlike other top lenders, Co-op Bank has concentrated on the Kenyan market for growth through branch expansions, launch of new entities and acquisitions.
Co-op Bank also holds 60 per cent stake in Kingdom Securities Limited, and 51 per cent in Co-operative Bank of South Sudan.
Other Co-op Bank Group subsidiaries include Co-optrust Investment Services Limited and Co-op Consultancy & Insurance Agency Limited, which it owns fully. Associate firms include CIC Insurance Group and Co-op Bank Fleet Africa Leasing Limited.
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.
While some regional subsidiaries have been profitable, multinational Kenyan lenders still derive the bulk of their earnings from the local market.