Mkombozi Commercial Bank Inaugurates New Branch In Bukoba As Profits Grew 330% In 2014

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Mkombozi Commercial Bank (DSE:MKCB), a financial institution established in 2009 in Tanzania aiming at supporting emerging local businesses, has recently inaugurated a branch in Bukoba district in Tanzania’s Kagera region seeking to support a high rate of growth in profits of 330% in the period 2013/2014.

With a profit that jumped from TZS 372 million in the period 2012/2013 to TZS 1,600 million in the period 2013/2014, the branch responds to the bank’s needs of extending further its reach in the country after the inauguration of three new offices in Dar es Salaam and Mwanza in Lake Victoria region in 2012, helped the financial institution to experience rapid growth rates in the periods 2012/2013 and 2013/2014.

The bank’s assets increased more than 200% from TZS 34.9 billion in 2012 to TZS 106 billion as of October, 2015, while loans grew at the same rate from TZS 16.6 billion to TZS 54.2 in the same period, explained Mkombozi Commercial Bank Executive Director Edwina Lupembe.

Meanwhile the bank’s deposits which increased over 175% from TZS 28.3 billion in 2012 to TZS 78.5 billion in 2014 while the bank’s capital did so over 200% from TZS 6.5 billion to TZS 20.6 billion in same period, Mrs. Lupembe added.

To encourage the population to open deposit accounts, the bank will also offer in partnership with the National Health Insurance Fund (NHIF) the possibility to be covered for merely TZS 76,500 per month for members of any cooperative group, Mrs. Lupembe concluded.

According to NHIF, the fee per coverage is at 6% of the employee salary at around TZS 81,900 per month.

The bank, by offering deposit accounts and coverage, will support human development in the region by supporting the region’s growing population with lending and better access to health services, explained Bishop Desiderius Rwoma of the district’s diocese.

According to the Bukoba District Council (BDC), the population is growing at a rate of 1.8% per annum and there where only three banks to serve over 395,000 people in the rural district and nearly 90,000 in the urban one.

According to the Bank of Tanzania (BOT), Mkombozi’s new branch extends the district banks’ network to five branches with National Microfinance Bank managing two branches and CRDB and NBC administrating the other two.