HOPE Advancement Inc., a subsidiary of HOPE International Inc., has acquired a 51 percent stake in SMEP Microfinance Bank PLC (SMEP MFB).
The acquisition by HOPE Advancement Inc. is expected to bring about significant changes for SMEP MFB.
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“The acquisition is expected to strengthen SMEP MFPB through injection of additional capital to fund business expansion, upgrade of information technology infrastructure as well as reconstitution of the board to bolster governance,” Said the CBK in a press release
The acquisition was officially approved by the Central Bank of Kenya (CBK) on July 27, 2023, and received the green light from the Cabinet Secretary for the National Treasury and Economic Planning on August 4, 2023.
SMEP MFB, headquartered in Nairobi County, was licensed by the CBK in December 2010. The microfinance institution operates seven branches, 14 deposit-taking marketing offices, and utilizes seven third-party agents across the country.
Prior to this acquisition, the National Council of Churches of Kenya held a majority 71 percent share in the microfinance bank.
HOPE Advancement Inc., incorporated in the state of Delaware, USA, acts as a holding company for investments and microfinance activities within the HOPE International Inc. group. This charitable organization, headquartered in Pennsylvania, has a history of empowering communities through microfinance initiatives.
Among its other investments in the microfinance sector, HOPE holds a substantial 99.9 percent share in Urwego Bank Plc of Rwanda and a 15 percent stake in Turame Community Finance of Burundi.
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SMEP MFB controls a market share of 5.09 percent of the microfinance banking sector and is considered a large tier microfinance bank. The acquisition is expected to have a significant impact on the microfinance sector.
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