Cash Flow Statement

For The Year Ended 30 June 2003	Notes		2002
Cash flows from operating activities
Operating profit before provision for taxation		36,858,503	38,428,858
Adjustments for:
Depreciation		6,130,966	4,648,835
Interest income received on surplus funds		(1,353,328)	(1,019,779)
Income from Tana building investment		(295,312)
		41,340,829	42,057,914
(Increase) in items in course of collection from other banks		16,154,461	(62,284,675)
(Increase) in other assets		(12,044,002)	(7,988,081)
(Increase) in loans and advances to customers		(372,849,100)	(154,445,983)
Increase in demand deposits		72,991,483	157,177,115
Increase in saving deposits		319,061,221	204,364,769
Increase in fixed deposits		38,169,891	(31,611,547)
increase in margin held on letters of credit		33,976,948	(9,743,804)
increase in other liabilities		33,765,542	24,670,638
		170,567,273	162,196,346
Income taxes paid		(14,699,117)	(14,704,620)
Net cash inflow from operating activities		155,868,156	147,491,726
Cash flows from investing activities
Purchase of fixed assets		(9,632,276)	(8,886,049)
Investment of Tana building		(1,454,397)	(21,347,398)
Disposal proceeds of treasury bills		508,600	(129,954,200)
Disposal proceeds of government bonds		10,000,000
IReturn from:
interest received on treasury bills and govt bonds		1,353,328	1,019,779
Income from Tana building investment		295,312
Net cash (used in) received from investing activities		1,070,567	(159,167,868)
Cash flows from financing activates
proceeds from issuance of share capital			25,000,000
Dividends paid		(15,000,000)	(5,000,000)
Net cash received from (used in) financing activities		(15,000,000)	(20,000,000)
Net cash received from (used in) financing activities

Net increase in cash and cash equivalents		141,938,723	8,323,858
Cash and cash equivalents, 1 July 2002		378,468,836	370,144,978
Cash and cash equivalents, 30 June 2003		520,407,559	378,468,836