A United States based organization has officially acquired 51 percent of SMEP Microfinance Bank PLC which is owned by the National Council of Churches in Kenya (NCCK).
The acquisition by Hope Advancement Inc based in New Jersey will make them the majority shareholder of SMEP microfinance.
The news was announced through a press release by the Central Bank of Kenya (CBK) dated November 2, 2023.
“This follows CBK’s approval on July 27, 2023, under Section 19 (4) of the Microfinance Act and approval by the Cabinet Secretary for the National Treasury and Economic Planning on August 4, 2023, pursuant to Section 19(3)(b) of the Microfinance Act,” the CBK press release stated.
Notably, SMEP microfinance and Hope International completed the share purchase agreement on 18th October 2023.
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Hope Advancement Inc
Interestingly, Hope Inc was started in Ukraine in the 1990s. Consequently, the company was incorporated on November 1, 2011, in the State of Delaware, USA.
As such, this acquisition comes as the organization celebrates its 25th anniversary.
Currently, Hope Inc is a wholly owned subsidiary of Hope International Inc, a charitable organization based in Pennsylvania, USA
Further, it acts as the holding company for investments and microfinance activities of the group.
The organization offers Christian gospel-based microfinance solutions to more than twenty countries worldwide
Notably, Hope Inc has extended its influence on multiple microfinance banks within the region.
Hope Inc owns 99.9 percent shareholding in Urwego Bank Plc of Rwanda which is licensed and regulated by the National Bank of Rwanda.
Additionally, it owns a 15 percent shareholding in Turame Community Finance of Burundi, which is licensed and regulated by the Bank of Burundi.
SMEP Micro Finance Bank
SMEP Microfinance Bank was licensed by CBK on December 14, 2010. The microfinance bank focuses on group banking, SME & Church banking.
Prior to this acquisition, the National Council of Churches of Kenya held 71 percent of SMEP Microfinance Bank’s shares.
The institution controls a market share of 5.09 percent of the microfinance banking sector and is considered a large tier microfinance bank.
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Furthermore, the acquisition is expected to strengthen SMEP Microfinance Bank through injection of additional capital to fund business expansion, upgrade information technology infrastructure as well as reconstitution of the board to bolster governance.
Nevertheless, Kenya has a growing market for faith-based finance solutions including Christian Banks and Islamic Banks.
These banks follow religious teachings in their financial practices to their customers offering financial inclusion.
