Tanzania: Over TZS 70 million dividends uncollected by Mkombozi shareholders

More than TZS 70 million (Ghs 175,279) dividends remained uncollected by shareholders at Mkombozi Commercial Bank Plc.

The Managing Director of Mkombozi Commercial Bank Plc, Mr Respige Kimati said in Dar es Salaam yesterday that the bank has issued information to all shareholders to collect their dividends for the 2017/18 financial year and enjoy the fruits of their investment.

He said majority of shareholders who have not taken their dividends are individual because they bought small shares.

We have advertised in the media and in churches because some of them also are religious groups but the response has not been good. May be because they bought few shares and the earnings also small,” said Mr Kimati.

He said it is likely that some shareholders do not have a good understanding of its ownership and use. Many use ownership as income which is not right.

They need to get training so that they can use that opportunity to invest by buying shares.

He urged the institutions, community and groups to support them by using their services provided by the bank to have accounts that do not incur any costs or deduction.

He said that lack of proper communication in customer forms was also one of the reasons of delaying to collect dividends.

He said for those who do not take the dividend after seven years their dividend will be returned to the Bank of Tanzania (BoT) in accordance to the law.

The lender, listed on Dar es Salaam Stock Exchange (DSE) alternative market, wants to raise TZS 15.4bn – under the right issue campaign. Mkombozi was listed on DSE six years ago and now they are selling right issue.

The right issue offers one extra share to every existing share meaning a ratio of one to one. The bank wants to expand business and reach more people, especially in rural areas.

He said Mkombozi Commercial Bank Plc has more than 11,000 customers including institutions and individual. Currently, the bank, which the Catholic Church is the majority shareholders, boosts a market capitalisation of TZS 16.08bn.

Its shares are hardly trades on the exchange. Mr Kimati said that the bank aims to be a bank that provides quality financial services to all sectors and the economy in a sustainable and responsible manner in society to meet the expectations of their customers.

“MCKB operates in eight regions with 11 branches. The four branches are in Dar es Salaam and one each in Kilimanjaro, Morogoro, Iringa, Njombe, Mwanza, Kagera and Dodoma regions. In liquidity we are very ok,” said Kimati.