Tuesday Dec 24, 2024
Tuesday Dec 24, 2024
Thursday, 10 February 2022 01:20 - - {{hitsCtrl.values.hits}}
LOLC Holdings PLC. yesterday announced its entry to Kenya and consolidated its operations in Tajikistan via acquisitions as part of its position as the world’s largest multi-currency, multi-geographic microfinance service provider.
LOLC Group, through its fully-owned subsidiary LOLC Mauritius Holdings Ltd., has obtained approval to acquire a majority stake (73.29%) in a microfinance bank, Key Micro Finance Bank (KMFB) in Kenya.
KMFB conducts deposit taking micro financing business under a licence issued by the Central Bank of Kenya (CBK).
KMFB has three branches and one deposit taking marketing unit located in Nairobi and Meru countries. Its primary market is provision of financial services to small and medium enterprises (SMEs).
The proposed acquisition follows the CBK’s approval on 22 December 2021 under section 19 (4) of the Microfinance Act, and the approval of the Cabinet Secretary for the National Treasury and Planning dated 7 January under section 19 (3)(b) of the Microfinance Act.
Additionally, the Group further consolidated its position in Tajikistan by acquiring the remaining 25% of Karat, (LLC LTMKh and LLCTMKhL) which has a license authorising them to conduct micro lending and gold loan business in Tajikistan.
Post this transaction the Group now owns 100% of Karat.
Further, the Group also acquired 100% in Fazo-S Microcredit Deposit Organisation, a deposit taking financial institution in Tajikistan.
With 100% ownership in both these entities, LOLC said it is well positioned to roll out its business model and offer a wide range of products to the Tajikistani market.
Tajikistan, with a population of over 9.5 million people and a lower GDP Per capita of $ 859 presents tremendous potential for rolling out the LOLC’s highly successful MSME model that specialises in serving bottom-of-the-pyramid clientele.
LOLC said the acquisitions are as part of its strategy to expand presence across the globe, imprinting its footprint firmly as the largest micro, small and medium enterprises lending platform in the world.
