The Co-operative Bank of Kenya Limited booked a KES 3.74 billion profit for 2009, up from KES 3.4 billion in the prior year. The improvement was largely due to the 19% rise in net interest income to KES 6.8 billion and to the bank's credit portfolio expansion to KES 62.3 billion from KES 52.9 billion in 2008. The bank also doubled its dividend to KES 0.2 per share.

National Social Security Fund (NSSF) is being pressurized by the government of Kenya to divest its 48% stake in the National Bank of Kenya (NBK). However the board of trustees wants to keep its shares in NBK. Last month, the government wrote to the workers pension body demanding it to divest its shares in NBK. NSSF trustees had held two meeting after receiving the letter and rejected the government request. The chairman of the board, Adan Daud Mohammed was asked to write to the Finance minister stating that NSSF had no intention of selling its shares. An NSSF board member, who denied to be named, said: Thats true! We wrote saying we shall not sell. The board is also reported to have alerted the Privatization Commission to its unwillingness to divest from NBK until some underlying issues had been addressed by Treasury. International Monetary Fund (IMF) has been pressurizing the government to fully privatize NBK, Kenya Commercial Bank Ltd (KCB), Development Bank of Kenya Ltd, Industrial Development Bank and the Co-operative Bank of Kenya Limited. Francis Atwoli, the vocal secretary-general of the Central Organization of Trade Unions (Cotu) and a trustee of the NSSF, said NSSF intended to own the bank, and it would not be forced to sell its shares. Last week, Mr. Atwoli stated that the issue of privatizing NBK had been raised at their board meeting.

The Co-operative Bank of Kenya Limited reported earnings results for the first half ended June 30, 2009. The company has bucked industry trend to record a 16% growth in pre-tax profit for the first six months of 2009. The bank's earnings increased from KES 1.67 billion for the period ending June 30, 20009 to KES 1.95 billion recorded over the same time in 2008. The bank recorded a 25% increase in interest income to KES 3.1 billion for the first half of 2009. The bank provided earnings guidance for the year of 2009. The company will record at least KES 4.5 billion in full year pre-tax profit. The bank intend to open an additional 20 branches before the end of the year to bring their network to a total of 83 branches while exploring ways of boosting their core banking system to enhance efficiency.