The Uganda central Bank has sold the stakes formerly owned by Kenya Imperial bank that had collapsed to Exim Tanzania. The stakes were under the Imperial bank of Uganda.
This transaction that was made by the central bank of Uganda has resulted to a significant reduction of imperial’s assets; the Uganda unit was its only subsidiary that was founded in 2008.
The Kenyan bank had made a total investment of Ksh858 million ($254,226) in the Ugandan subsidiary as of 2014 when the unit had gross assets of Ksh7.9 billion ($2.3 million).
Emmanuel Tumusiime-Mutebileof the Bank of Uganda said in a statement that, “Bank of Uganda (BoU) has recently sold 58.6 per cent ordinary shares of Imperial Bank (Uganda), formerly held by Imperial Bank (Kenya), to Exim Bank (Tanzania) Ltd.”
Prof Tumusiime-Mutebile further added that “BoU congratulates Exim Bank, the new majority shareholders, and the old minority shareholders.”
Exim Bank is one of the key players in the financial sector of Tanzania, and also one of the largest lenders in the country. Exim operates in other countries including Djibout and Union of Comoros.
Last year in October the central bank of Tanzania took the steps to place Imperial Uganda on receivership. Similar actions were taken as accounts of fraud at the lender came to light by the Central Bank of Kenya.