9 January 2018

Tanzania: Bank Closure Dismays Customers

Bukoba — SEVERAL women with bank accounts at the Kagera Farmers' Cooperative Bank (KFCB) have raised concern following decisions taken by the Bank of Tanzania (BoT) to close down their institution.

Mrs Marygoreth Mugisha, who is also Chairperson of Bukoba Tuinuane Women Saccos (BUTUWOSA), was visibly disappointed upon being told that the bank had been closed and she could not withdraw any money. "I arrived at the KFCB offices this morning (Monday) with the intention of drawing about five million shillings, only to be told that the highest amount was 1.5m/-.

To make matters worse, the bank is currently closed and we (customers) are not certain when the doors will be opened. We are in dilemma," she lamented. According to Mrs Mugisha, Butuwosa had about 191 members who also have personal bank accounts at KFCB adding that the SACCOS had a deposit exceeding 31m/-. BoT has closed five banks at a go and placed three others on the watch list for six months, due to under capitalisation.

Announcing the revocation in Dar es Salaam last week, the outgoing BoT Governor, Prof Benno Ndulu, mentioned the financial institutions as Covenant Bank for Women (Tanzania) Limited; Efatha Bank Limited; Njombe Community Bank Limited; Kagera Farmers Cooperatives Bank Limited and Meru Community Bank Limited.

BoT has appointed the Deposit Insurance Board (DIB) as liquidator of the aforesaid banks effective from January 4, 2018.

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