MOSHI-based Kilimanjaro Co-operative Bank Limited (KCBL) has managed to raise its core capital before the deadline set by the regulator, the Board Chairman Reginald Hoseah has said.
He said here over the weekend they managed to raise 5.2bn/- by the end of July which is over the minimum capital requirement by the Central Bank, thanks to efforts by the Regional Commissioner (RC), Ms Anna Mghwira.
"By July 31, this year, the core capital of the bank reached more than 5.2bn/- surpassing the 5.0bn/- target," he said during a special General Meeting of the country's first co-operative bank.
He said after the government's directives through the Central Bank about the core capital requirement, a special committee was formed to make sure the bank got the required capital and the work to raise the capital was done under the coordination of the Kilimanjaro Development Fund (KDF).
"The committee then started to implement the directives which were set by KCBL special general meeting early this year and which was aimed at ensuring that our bank gets the needed core capital so as to avoid its closure," he said.
He added that the resolutions included that of opening an escrow account in a financial institution which has a big banking network countrywide which would enable potential investors to invest with the KCBL whenever they are instead of travelling all the way to Moshi.
"Another resolution which the committee was directed to implement was that of making the process which would make KCBL change its operation system from that of a co-operative union status to a company one," he said.
Mr Hoseah noted that in implementing the resolutions the special committee in collaboration with the RC Mghwira, organised a forum for Kilimanjaro residents residing outside the region and friends of Kilimanjaro Region with the intention of saving the situation.
"In a special way, we also express our gratitude to the Kilimanjaro RC, Ms Anna Mghwira for leading us through the whole processes which enabled us achieve this success," he said.
Speaking during the meeting, Ms Mghwira urged co-operative stakeholders and businesspersons inside and outside Kilimanjaro Region to buy KCBL shares so as to strengthen the bank which she said would now work as a company instead of a co-operative union status it was working in during the past.
"I also urge the bank's leadership to ensure that all the debt that the bank owes its clients be collected immediately and put the repaid loans in the bank's capital to make the capital stronger," she said.
During the special general meeting, the members of the KCBL most of them Amcos and Saccos, passed a resolution to make the bank operates as a company instead of a co-operative union.