Stanbic bank profit up 12 percent

KAMPALA-Uganda’s biggest bank by assets Stanbic saw its profit before tax rise 12 percent to Shs 359.6 billion in calendar 2021, up from Shs 320.7 bln previously.

The lender said in a report published in newspapers customer deposits were up mildly to Shs 5.7 trillion from Shs 5.5 trillion in 2020 – a five percent rise.

The season is now for banks to report for the financial year just ended. Ugandan banks report for the calendar year that ends on December 31. The deadline is all the country’s 25 commercial banks must report by April 30.

Stanbic wrote off bad debts worth Shs 63 bln in 2021, up by 31 percent from the Shs 48 bln written off in 2020.

“In a year that saw the economy slow down significantly due to effects of the Covid-19 pandemic, we played our part, making credit available to critical drivers of growth hence supporting businesses create new employment opportunities and keep Ugandans in their jobs,” the bank’s Chief Executive, Anne Juuko said in a statement.

They saw a marked reduction in non-performing loans. These came down to Shs 151.2 bln in 2021 from Shs 219 bln the year before.

The bank said it lent out Shs 3.7 trn in 2021, slightly better than the Shs 3.6 trn taken by borrowers in 2020.

In a direct boost to the economy, the bank said it had lent Shs 290 bln to the trade sector; Shs 225 bln to households; Shs 223 bln to building and construction, while Shs 218 bln went to the manufacturing sector.

Agriculture, which employs more than 60 percent of the rural population and contributes more than 25 percent of the country’s economy got Shs 150 bln from Stanbic, as rural cooperatives sought cash to lend to their members at low rates.

Transport and communication got Shs 122 bln as the country finally reopened its economy after two rolling lockdowns.

Assets at Stanbic, which was once state-owned before being finally sold to South Africa-based Standard Group, grew to reach Shs 8.7 trn in 2021, up slightly from 2020’s Shs 8.6 trn.

The bank expects to perform even better in the current year.

“Looking ahead, 2022 presents a mixed bag of expectations especially on the external front mostly informed by the Russia-Ukraine conflict and rising fuel prices. However, prospects are brightening with more countries across the globe opening up their economies as the pandemic subsides,” Stanbic Uganda Holding Chief Executive Officer Andrew Mashanda said in printed remarks accompanying the report.

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Boda-boda associations suspend revenue collection in Gulu City

GULU – Different associations of boda-boda operators in Gulu City have disagreed with City Authorities on revenue collection and demanded that the Council suspends their new revenue collection directive.

In a bid to widen the revenue base, Council directed the divisions to register all boda-boda operators in their respective areas and generate revenue from them.

Meanwhile, each registered boda-boda operator is to pay Council an annual subscription fee of Shs48,000, a decision widely detested by boda-boda operators.

The City has more than 11,000 boda-boda operators scattered in 422 stages but only 2,174 of the 6000 operators in Western Division were registered and less than 1000 registered in the Eastern Division.

Raymond Ocan, the Chairperson Gulu West Boda-boda Association told theCooperator over the weekend in an interview that they are still consulting members on the new tax policy.

However, he noted that the Council has hurriedly endorsed the new policy but did not consider factors which include construction of stages for boda-boda, hygiene and sanitation.

“We are not against paying taxes but not until they provide us with shades and improvement on garbage management in the areas where we are operating from, then they can take our money,” Ocan explained.

His counterpart Godfrey Ojok, the General Secretary Gulu East Boda-boda Association has also raised similar concerns of lack of parking space for boda-boda operators in the City.

With a total of 6,000 operators, Ojok revealed that only 2,500 have so far been registered while the majority are mobile operators who do not have functional stages provided for within the City.

“The members are still discussing the policy but the most important thing is that we need more time as many of us are still recovering from the lockdown,” Ojok told theCooperator.

The two Division Mayors, Geoffrey Otim and Patrick Oola Lumumba urged City authorities to engage the associations before the implementation.

On Monday, the City Town Clerk Moses Otimong was out of office and did not pick up repeated phone calls over the matter.

The Senior Principal Auditor, Geoffrey Oyoo who was in office declined to speak, arguing that he has no legal mandate or delegation to respond to the concern.

However, with more than 12,000 boda boda operators, the City can potentially generate nearly Shs 600 million from the associations as revenue.

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COVID 19 impact: Landlord evicts school over unpaid rent arrears

HOIMA -The impact of Covid-19 has started to bite in Hoima as Bright Children Nursery and Primary School was evicted over rent areas accumulated over the lockdown.

Bright Children Nursery School is located in Kiryateete, Hoima West City division in Hoima City.

The conflict erupted after the schools officially opened on Monday 10th of this month and registered a good number of pupils.

The Landlord Denis Kaija, asked the School Director, Gerald Mugabi to relocate his school from his structures over failure to pay rent arrears amounting to Shs 30 million which was accrued during the Covid-19 lockdown. For the past two years, the landlord says, Mugabi has never paid a single coin for rent to him.

Kaija issued an eviction notice to the School Director through Majimoto Auctioneers and Court Bailiffs to evict Bright Children Nursery and Primary School from his buildings.

Kaija explains that Mugabi started renting at his premises in 2016. According to the tenancy agreement, Mugabi was meant to stop using the structures in 2020 but the landlord says, his tenant has continued to use the structures even before renewing his tenancy.

When Mugabi failed to pay, Kaija sought police intervention last year where Mugabi agreed that the school will be relocated by November 30, 2021 which has not been done.

He noted that, it was surprising that Mugabi is still operating and recruiting children in his buildings despite failing to honour the agreement.

However, Director Mugabi says, he did not leave the premises because the Landlord also failed to fulfill the agreement they made while at police.

He noted that, the landlord was supposed to pay the school Shs 2million as compensation for some structures that were set up by the school at the site.

He added that if the Landlord had complied, they would have shifted to another place. “Tenant Mugabi / director of Bright Children Nursery and Primary School, is ready to leave so long as the Landlord meets what we signed while at Hoima police,” said Mugabi.

But Kaija rubbished the claims of his tenant saying, his efforts to pay Mugabi the Shs2m have yielded no fruits since Mugabi has always failed to honor the invitation to pick his money.

He further noted that several times he has tried to give Mugambi the Shs2m so that he can vacate his building but Mugabi keeps dodging him.

Kaija also noted that, he has involved several offices including the Hoima City Education department but they have not helped and this forced him to resort to forceful eviction of Mugabi from his buildings since he is unable to pay.

He noted that Hoima City is demanding him Shs5.7 million, property tax and he is unable to pay since his tenant has failed to pay him his rent arrears.

Denis Asiimwe, a Court Bailiff from Majimoto Auctioneers and Court Bailiffs said, the school was closed last week but Mugabi illegally broke the seals and gained access into the structures.

He demanded him to return the 15 padlocks which he broke before any action is taken against him.

Johnson Kusiima Baingana, the Hoima Oil City Principal Education Officer says, his office has received several complaints over the school and promised to make a follow up.

The government through the Ministry of Education and Sports had earlier directed all the Landlords to pardon school owners rent arrears accumulated during a two year lockdown; Landlords say that they are also between a rock and had place.

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