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Co-operative Bank of Kenya Response to #CoopBankIPOScandal







Dear Kenyans,

Our attention has been drawn to a hate anonymous document circulated on social media on the shareholding structure of the bank.
We wish to put the following on record:

The listing of Co-operative Bank was over 8 years back in year 2008. This was vide an Initial Public Offer (IPO) that was approved by all the necessary Government regulatory agencies that included the Ministry of Finance, the Central Bank of Kenya, the Nairobi Securities Exchange and the Capital Markets Authority.
All the pertinent disclosures were made as per the detailed Information Memorandum to the general public dated 27th October 2008 that included the restructuring process undertaken to facilitate the listing. The Hon. Minister for Finance vide Gazette notice No.7089 dated 8th August 2008 effected the restructuring.

The Hate document was initially circulated way back in June 2008 by a former Managing Director of the Bank Mr. Erastus Mureithi, who was retired early by the bank in year 2001 following huge losses.

Mr. Mureithi is in court with the Bank on various matters that are in the public domain; on one case Mr. Mureithi has been ordered by court to refund the Bank various unpaid taxes to KRA now in excess of Ksh 25 Million.

Co-op Bank shareholding/directors interest in the Bank is in the public domain as a listed Bank. The Bank is 65% owned by Co-opholding Co-operative Society Limited, a strategic vehicle on behalf of the over 10 million member co-operative movement in Kenya. The Bank with countrywide ownership is indeed the face of Kenya.

The Bank has been listed at the Nairobi Securities Exchange now for almost 8 years and we are not aware of any concerns by the shareholders on the structure as approved in year 2008.

Co-op Bank is undoubtedly one of Kenya’s success stories. From a big loss of over Ksh 2.3 Billion with the institution on the verge of collapse in year 2001, the Bank is now the largest Co-operative Bank in Africa, and one of the largest in the region with an asset base of over Ksh 340 Billion, and a profit of over Ksh 15.38 Billion, over 145 outlets and over 5.9 million customers. The Bank is run by a professional Board of Directors with regular shareholders meetings.

As above, the allegations contained in the undated, anonymous document are totally untrue, malicious and unfounded. Co-op Bank has operated at all times with utmost professionalism and ethical standards.

Any interested person can obtain more details if required from our legal department on 3276654 or our regulators as a listed company.

Ngumo Kahiga
Head, Marketing and Communications
Co-operative Bank of Kenya

Via CO-OP BANK KENYA

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