Kenyan bank KCB expands in southern Sudan

Kenya Commercial Bank (KCB) is expanding in southern Sudan after becoming the first international bank to open there since the end of Africa's longest civil war, an official said on Sunday.
Kenya's biggest retail bank opened a branch last month in Juba, South Sudan's capital, and then in Rumbek. It plans to open two more soon in remote western towns close to the border with the Democratic Republic in Congo (DRC).
"It is an emerging market and of course it is a risk, but we anticipate that peace will prevail in this country," said Harun Kibogong, KCB Sudan Ltd's business development manager. "It is a huge investment, but we expect the returns will be achieved. The right structures are now in place ... We played a key role in setting those up with the central bank." KCB received its licence from the Bank of Sudan on May 10.
"We opened here three weeks ago, then in Rumbek a week later," he said in an interview at his office in Juba. "We plan to open in Yambio and Yei towns, hopefully within weeks." KCB is the first international bank to open shop there.
Kenya hosted more than two-and-a-half years of talks that produced a power and wealth-sharing deal in January 2005 between southern rebels and Sudan's Islamic northern government.
Implementation of the agreement has the fledgling southern administration to slow the pace.
Kibogong said the fastest growing sectors in the area were construction and renovation. An influx of international workers and returning South Sudanese people desperately needed accommodation and office space, he said.
"Importing basic commodities for survival is growing very quickly too," he said. "And transport. Fares are a bit crazy right now, but we expect them to reduce soon. That is one of things that will oil the wheels of growth for this economy."
KCB is Kenya's largest retail bank with branches spread throughout much of the country.
The bank also has a subsidiary in Tanzania and plans to open branches in Uganda in 2006/07 and Rwanda 2007/08.
KCB's first quarter pre-tax profits jumped 85 percent to 733 million shillings ($10.3 million), driven by revenue growth.