Uganda’s central bank has sold the majority stake in Imperial Bank Uganda, previously held by Kenya’s collapsed Imperial Bank to a Tanzanian financial institution.
The Central bank of Uganda took over Imperial Bank Uganda after authorities in Kenya took over the parent company (Kenya's Imperial Bank Limited) due to unsafe business conditions.
According to Business Daily, the Kenyan bank had invested a total of Sh858 million in the Ugandan subsidiary -which was formed in 2010- as of 2014 when the unit had gross assets of Sh7.9 billion.
Bank of Uganda’s governor Emmanuel Tumusiime-Mutebile said in a statement on Monday that “Bank of Uganda (BoU) has recently sold 58.6% ordinary shares of Imperial Bank (Uganda), formerly held by Imperial Bank (Kenya), to Exim Bank (Tanzania) Ltd.”
Prof Tumusiime-Mutebile congratulated Exim Bank saying that the lender is “the new majority shareholders and the old minority shareholders.”
In October last year, BoU placed Imperial Bank Uganda under receivership. When accounts of fraud at the lender surfaced, Central Bank of Kenya took similar actions.
In addition to being one of the largest lenders in Tanzania, Exim Bank also operates subsidiaries in the Union of Comoros and Djibouti.
Tumusiime-Mutebile said that with the sale of the stake to the Tanzanian multinational, the regulator’s statutory management has since ended. He also noted that the Imperial Bank of Uganda has changed its name to Exim Bank (Uganda).
Image Credit: Exim Bank