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Kampala, Uganda | ISAAC KHISA | Regional lender, KCB, is set to rollout agency banking by close of the year as it strives to grow profitability. This follows the lender’s approval from the Bank of Uganda, two weeks ago, in line with the new Financial Institutions (amendment) Act.
Joram Kiarie, the managing director at KCB Uganda told his guest at the Kampala Serena Hotel as the bank marked 10 years of existence on Nov 03 said the lender is well placed to meet all the customer’s financial needs with affordable financial products and services.
“KCB continues to look for new opportunities to expand and grow in terms of branch network and outreach mobile banking, internet banking, agency banking and digital banking that improves customer experience,” he said.
He said lender has already rollout agent banking model in Kenya, Tanzania, Rwanda and Burundi. KCB Group is also eyeing at venturing into Somalia and China, according to the Group Chaiperson Ngeny Biwott and Group CEO Joshua Oigara.
Gracing the occasion, Louis Kasekende, the deputy governor ,Bank of Uganda, said executives at the central bank are cautious of the role of financial intermediation provided by banks and thus do not take it for granted.
“In order for business to grow it needs financing and KCB has played that role so well financing some of the most outstanding projects in the market,” he said.
He reiterated the need for financial service providers to be innovative continuously to remain competitive in the face of technological advancement, adding that the entire banking sector is going to be characterized with adoption of new technologies.
Last year, KCB Uganda recorded a 20% growth in net profits from Shs4.5bn in 2015 to Shs5.4bn in 2016. KCB entered the Ugandan market in 2007 immediately the central bank lifted the moratorium on licensing new banks in 1998 in a move to stabilise the country’s financial sector.
With its first branch on Commercial Plaza, Kampala Road, the lender has since opened 16 branches countrywide, eight of them in Kampala and the rest in Jinja, Mbale, Lira, Gulu, Arua, Hoima, Fort Portal and Mbarara.
The lender has grown its asset base from Shs59bn in 2007 to Shs717bn in 2017, with gross loans of up to Shs231bn issued to date.
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