Cash Flow Statement

For The Year Ended 30 June 2004	Notes		2003
Cash flows from operating activities
Operating profit before provision for taxation		78,552,352	36,858,503
Adjustments for:
Depreciation		6,912,815	6,130,966
Interest income received on surplus funds		(3,576,212)	(1,353,328)
Income from Tana building investment		(1,216,485)	(295,312)
		80,672,470	41,340,829
(Increase) in items in course of collection		(34,047,644)	16,154,461
(Increase) in other assets		(3,969,961)	(12,044,002)
(Increase) in loans and advances to customers		(409,495,679)	(372,849,100)
Increase in demand deposits		156,903,517	72,991,483
Increase in saving deposits		391,424,887	319,061,221
Increase in fixed deposits		8,020,674	38,169,891
increase in margin held on letters of credit		6,580,021	33,976,948
increase in other liabilities		49,022,748	33,765,542
		245,111,033	170,567,273
Income taxes paid		(10,331,984)	(14,699,117)
Net cash inflow from operating activities		234,779,049	155,868,156
Cash flows from investing activities
Purchase of fixed assets		(20,295,030)	(9,632,276)
Investment		(2,750,000)	(1,454,397)
Disposal proceeds of treasury bills		(169,593,400)	(508,600)
Disposal proceeds of government bonds			10,000,000
Interest income received on surplus funds		3,576,212	1,353,328
Income from Tana building investment		1,216,485	295,312
Net cash (used in) received from investing activities		(187,845,733)	1,070,567
Cash flows from financing activates
proceeds from issuance of share capital		25,000,000
Dividends paid		(20,000,000)	(15,000,000)
Net cash received from (used in) financing activities		(5,000,000)	(15,000,000)
Net cash received from (used in) financing activities

Net increase in cash and cash equivalents		51,933,316	141,938,723
Cash and cash equivalents, 1 July 2003		520,407,559	378,468,836
Cash and cash equivalents, 30 June 2004		572,340,875	520,407,559