The Central Bank of Kenya (CBK) has announced the acquisition of 73 per cent shareholding of Key Microfinance Bank PLC (Key MFB) by LOLC Mauritius Holdings Limited (LOLC Mauritius) effective January 01, 2022.
This follows CBK’s approval on December 22, 2021, under Section 19 (4) of the Microfinance Act and approval by the Cabinet Secretary for the National Treasury and Planning on January 7, 2022, pursuant to Section 19(3)(b) of the Microfinance Act.
“CBK welcomes this transaction that will strengthen Key MFB and enhance the resilience of Kenya’s microfinance banking sector. The investment will transform Key MFB business model in line with CBK’s vision for the microfinance banking sector,” read CBK’s statement.
Additionally, CBK confirmed the acquisition of 84.89 per cent shareholding of Century Microfinance Bank Limited (Century MFB) by Branch International Limited (Branch) effective January 1, 2022.
LOLC Mauritius is a private company incorporated in Mauritius that is wholly owned by LOLC Holdings PLC.
LOLC Mauritius holds investments in financial entities in Africa and is licensed by the Financial Services Commission of Mauritius.
LOLC Holdings PLC is a Sri Lankan conglomerate holding investments in financial and non-financial entities and is listed on the Colombo Stock Exchange, Sri Lanka. The group had total assets of USD 4.4 billion as at March 31, 2021.
LOLC Holdings PLC operates several microfinance businesses in Asia and is currently expanding in Africa.
It acquired a majority stake in a microfinance bank in Nigeria in 2019, and was granted a licence to establish a microfinance bank in Zambia in 2020.
The Treasury exempted Branch International Inc from section 19(1) of the Microfinance Act, 2006, for a period of four years from the 1st January 2020 until 31 December 2025 in connection with the acquisition and direct or indirect holding of ordinary shares in Century Microfinance Bank Limited.
Branch is one of the largest mobile application-based lenders in the country and brings financial services to the emerging markets by leveraging on the power of technology.
Branch was incorporated in Kenya on April 2, 2015, and is wholly owned by Branch International Holding Ltd, a company incorporated in Mauritius.
Branch International Holding Ltd is owned by Branch International Inc (BI), a company incorporated in the State of Delaware in the United States of America.
Branch’s total assets stood at Sh.1.1 billion as of December 31, 2020.
