Cooperative Bank Kenya is a commercial bank in Kenya, the largest economy in the East African Community. It is licensed by the Central Bank of Kenya, the Central Bank and the National Banking Supervisory Authority. The bank has introduced a correspondent banking model and has a deep client base in Kenya with more than 7.50 million accounts as of December 2018. In 2010, the bank was awarded the "Best Bank in Kenya" award by the Financial Times of London for its outstanding growth.

Overview

The bank caters to the banking needs of individuals, small businesses and large corporations with a focus on the needs of cooperatives in Kenya. Cooperative Bank is a large financial services institution. Its total assets are valued at 404.15 billion Kenyan shillings (approximately 4 billion USD). Its shareholders' equity was valued at approximately 36.80 billion shillings as of 31 December 2013 and the bank controlled around 8.2% of all banking assets in Kenya as of May 2012.

History

The bank was established in 1966 and was originally a cooperative. The banking license was issued in 1968. The Government of Kenya directed all cooperatives in the country to transfer their deposits to Cooperative Bank Kenya and required all cooperatives to purchase shares in the bank. In 1977, the bank opened its first subsidiary: Cooperative Finance Limited. In 1989, the bank transformed into a full-fledged commercial bank and added to its menu of products. In 1998, the bank's headquarters was destroyed due to the bombing of the nearby Embassy of the United States of America, and subsequently relocated. In the same year, the bank became an agent for money transfer services company MoneyGram. In 2002, the bank's headquarters was renovated and returned to the Co-operative Bank building. In 2008, the bank was listed on the Nairobi Stock Exchange under the ticker symbol: COOP.

In March 2020, the bank announced plans to acquire Jamii Bora Bank. Co-operative Bank acquired Jamii Bora Bank and renamed it Kingdom Bank Limited.

Member Companies

The companies that make up Cooperative Bank Limited include, but are not limited to, the following:

• Kingdom Securities Limited - Nairobi, Kenya - 60% Equity
• Co-opTrust Investment Services Limited - Nairobi, Kenya - 100% Equity
• Co-operative Consultancy Services Kenya Limited - 100% Equity
• China Investment Insurance Group Limited - 35.71% Equity
• South Sudan Cooperative Bank - Juba, South Sudan
• Cooperative Bank Foundation - Nairobi, Kenya
• Ethiopian Cooperative Bank - Addis Ababa, Ethiopia - under development
• Uganda Cooperative Bank - Kampala, Uganda - under development.
• Kingdom Bank Limited (Kenya) (formerly Jamii Bora Bank) - Nairobi, Kenya (90% shareholding)

Ownership

The bank's shares are owned by the following corporate entities and individuals:

row Owner name Ownership percentage 1 CoopHoldings Cooperative Society Limited 65.0 2 More than 116,000 "other" investors 35.0 Total 100.00

CoopHoldings Cooperative Society Limited is a holding company owned by cooperatives in Kenya who jointly own the majority of the controlling shares, accounting for 65% of all shares in the company. The remainder is held by individual and institutional investors through the Nairobi Stock Exchange.

Governance

The bank is governed by an 18-member board of directors. One of the non-executive directors, John Murugu, serves as chairperson. The Managing Director and CEO is Gideon Maina Muriuki, MBS. He oversees the day-to-day activities of the bank with the assistance of seven other senior executives