Kenya's largest bank begins opens subsidiary in south Sudan

State-owned Kenya Commercial Bank ( KCB) has began operations in southern Sudan's capital of Juba ending many months of uncertainty due to the death of the southern Sudan's leader John Garang, bank executives said Friday.

KCB deputy chief executive officer Martin Oduor-Otieno said in a statement that the bank's subsidiary which began operations on Wednesday would offer a full range of banking and financial products and services to the vast region's market.

"This is very exciting news for us. It also marks a major step in our efforts to increase our footprint in the region and grow the KCB group business. With our presence in Tanzania where we installed a new managing director a few days ago and the licensing of KCB Sudan, we are set to become a major player in the regional banking scene," said Oduor-Otieno.

Oduor-Otieno said the bank ventured in the untapped market after receiving a license from the Deputy Governor of the Bank of Sudan, Elijah Malok Mayen, becoming the first international bank to be licensed to offer conventional banking services in the war- ravaged southern Sudan region.

Oduor-Otieno said the bank is now set to become a major player in the regional banking industry following the commencement of its operations in Sudan.

He admitted that there were many challenges to be overcome by the Kenyan bank due to the fragility of the legal and regulatory framework.

"Southern Sudan has just come out a devastating war that has left the infrastructure completely destroyed and people desperate for support. We are prepared to partner with the people of southern Sudan to begin the reconstruction process by availing necessary banking and financial services to them," he said.

The Kenyan indigenous bank, which already has another subsidiary in Tanzania, is now one of the only two banks operating in southern Sudan, the other being Nile Commercial.

The bank plans to open a second branch in Rumbek in the region next week as it moves to meet the immense demand for banking services in southern Sudan.

The bank also expects to establish a presence in other southern Sudan towns of Yei and Yambio among other viable business centers in the country.

KCB said it has seconded five Kenyan staff to the Juba branch to help establish operating systems.

The bank has also set up an enquiries desk at its Nairobi headquarters to help investors intending to open accounts in Juba.

Mayen said the entry of KCB will spur economic growth in the southern region.

"The license we have issued is part of the implementation of the Comprehensive Peace Agreement that granted autonomy to the government of southern Sudan to establish a conventional banking system to support the economy," said Mayen.

Kenya, which hosted peace talks that led to last January's peace agreement, is particularly keen to beat South African rivals in the race for opportunities in southern Sudan and also aims to build a railway and oil pipeline to connect its neighbor to its Indian Ocean port city of Mombasa.

Source: Xinhua