Business
KACITA to open own bank
Publish Date: Mar 24, 2014
KACITA to open own bank
KACITA chairman Everest Kayondo.
  • mail
  • img
newvision

By Edward Kayiwa 

KAMPALA traders under their umbrella organization, the Kampala City Traders Association (KACITA) are looking forward to starting their own bank after commercial banks hiked interest rates last year to a level that pushed some of them out of business. 

Everest Kayondo, the chairman of the association told traders at their annual general meeting (AGM) on March 20, that the organization is finalizing plans to officially launch the bank any time soon. 

“We intend to open a commercial bank very soon that will cater for KACITA’S growing needs for investment as well as provide loans to traders at low interest rates in an effort to mitigate pressure from commercial banks that lend at exorbitant interest rates and push our colleagues out of business,” he said. 

Under the law, the KACITA traders will be required to raise the minimum capital requirement by the central bank of Sh25bn intended to ensure that banks are in a better position to safeguard depositors’ money in bad economic times before launching their venture in to the banking sector. 

“We intend to turn the association into a proactive body that positively influences business policy in Uganda. Although we have done a good job in securing loans for traders, a bank will take us a long way and the capital requirement will not fail us this time,” Kayondo said. 

“The association has in past years, gained a reputation for demanding fair trade terms for the business community in Kampala but it is time to have our own bank where we can access cheap loans for business instead of relying on others,” he added. 

Kayondo said the bank in question will be a public limited company with mainly traders buying and selling shares although he declined to give the name of the bank and that date of its launch. 

Currently, there are 25 commercial banks, offering both retail and wholesale services to 20% of Uganda’s population. 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
MPs demand accountability for sh5b for curbing banana wilt
MEMBERS of Parliament have demanded accountability from the Minister of Agriculture regarding sh5b allocated for fighting banana bacterial wilt in the country....
Museveni in China for Asian economic forum
President Yoweri Museveni is in the Chinese City Island of Hainan in Sanya for the BOAO Forum for the Asia Annual Conference....
Airlines scramble for new cockpit rules after crash
Airlines and policy makers rushed to mandate two crew members be in the cockpit at all times following revelations that from the doomed Germanwings flight....
Uganda robbed of sh1.5 trillion annually
UGANDA loses an average of $509m (about sh1.5 trillion) annually due to Illicit Financial Flows (IFFs). The figure is 10% of the current national budget...
KCCA wants sh7b for Usafi market
A Sh7b supplementary approval request by Kampala Capital City Authority (KCCA) for the purchase of Usafi market in Kampala has raised eyebrows among members of the parliamentary budget committee....
Workers MP demands workers representation on district councils
A proposal to have workers represented on district councils has been mooted by Workers’ representative in Parliament, Arinaitwe Rwakajara in a bid to ensure that their rights are protected and to curb exploitation....
Will the ban of food vendors help eliminate typhoid?
Yes
No
Can't Say
follow us
subscribe to our news letter