Kenyan banker Gideon Muriuki's Co-op Bank South Sudan unit more than doubles profit

Kenyan banker Gideon Muriuki's Co-operative Bank of Kenya Ltd. has turned its South Sudan subsidiary into a steady earner, with the unit's nine-month profit already more than double what it made in all of last year.

Co-operative Bank of South Sudan reported profit before tax of KSh528 million ($4.1 million) for the nine months through September, the Nairobi-listed group said in results released on Nov. 11. That compares with KSh236.3 million ($1.8 million) for the whole of 2025, an increase of 123%.

The unit earned KSh224 million ($1.7 million) in the first half of 2026, up from KSh56.9 million ($438,000) a year earlier. It made about KSh304 million ($2.3 million) in the third quarter alone, more than in the first six months combined.

From near zero to profit

The South Sudan business was barely profitable two years ago. It earned KSh11.1 million ($85,450) before tax in 2024, and its 2025 profit was more than 21 times that.

The bank credits lending to traders and construction companies and new digital channels, supported by an Infosys core banking system that went live this year. The Ministry of Finance and Economic Planning also uses the bank as a revenue-collection partner.

Co-op Bank owns 51% of the unit and the government of South Sudan holds 49%. It opened in Juba in 2013 and runs six branches.

The gains have come in a difficult economy. South Sudan relies on oil for more than 90% of government revenue, and exports were halted after a pipeline through Sudan was damaged in that country's war, resuming in January 2025. Banks have struggled with a severe shortage of local currency.

Group profit up 27%

The group's net profit for the nine months rose 27% to KSh27.43 billion ($211.2 million), and the board raised the interim dividend by 50% to KSh1.50 a share. Kingdom Bank, its 90%-owned Kenyan subsidiary, increased profit before tax by 61.8% to KSh1.33 billion ($10.2 million).

Muriuki has credited the growth to the bank's 2025 to 2029 "Good to Great" strategy and its "Soaring Eagle" transformation program, and has described the subsidiaries as "reinforcing the strength of the universal banking model."

Muriuki joined the bank in 1996 and became managing director in 2001, when it was loss-making. He led its 2008 listing on the Nairobi Securities Exchange. He owns about 135 million shares, or 2.3% of the bank, a holding he has built up through market purchases over the past two years.

Figures were converted at KSh129.9 to the dollar.