Twiga Bancorp capital to rise

Dar es Salaam. The government has commissioned a study on the capitalisation of Twiga Bancorp to expand.

Treasury Registrar Lawrence Mafuru said in a statement yesterday that the bank had a challenge relating to its capital structure to serve customers throughout Tanzania. He said that was why the government had commissioned the study on options for equity investment for the bank to reach its objective of operating countrywide.

Already the permanent secretary in the Ministry of Finance and Planning has issued a directive to the bank on restructuring.

Mr Mafuru said the government had restructured the bank’s management and its organisational structure with appointment of new members of the board in 2015.

“The bank has recorded some achievements. For example, since last year when the bank got a new management team, it got a clean audit certificate from the Controller and Auditor General. “In January this year the bank formulated a five-year plan with the major objective of expanding its operating capital. The bank is not facing a liquidity crisis at all,” Mr Mafuru said.

It has been reported that the bank is facing liquidity crisis.

Twiga Bancorp Limited was licensed in 1998 by the Bank of Tanzania as a non-bank financial institution under the Banking and Financial Institutions Act, 1991. The licence empowered the bank to handle all banking products and services except taking deposits on current account. Over the years, the bank has continued to implement strategies aimed at transforming the bank into a fully fledged commercial bank.