Branch acquires majority shareholding in Century Microfinance Bank

NAIROBI, Kenya Feb 9-Branch International Limited has acquired a majority stake in the Century Microfinance Bank Limited (Century MFB) effective January 1, 2022.

This follows CBK’s approval on December 30, 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.

This is the first buy-out of a mainstream lender by a digital lender in the country as the new digital lending law kicks in.

In December, President Uhuru Kenyatta signed into law the Central Bank Amendment Bill 2021 which brought digital lenders under CBK’s control.

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.

Century MFB was licensed by CBK in September 2012, to carry out nationwide microfinance banking business.

The MFB has two branches, one at the Head Office located along Moi Avenue, Nairobi and the other in Gikomba.

It is categorised as a small microfinance bank with a market share of below 1 percent of the microfinance banking sector as of December 31, 2021.

The institution’s primary focus is provision of financial services to smallholder farmers and small and medium enterprises (SMEs).

Since the first MFB became operational in 2009, the Kenyan financial sector landscape has transformed significantly.

This has been underpinned by advances in technology, innovation and customer drive towards Anytime Anywhere services.

In response to this changing terrain, CBK has been working with MFB’s to transform their operations.

“CBK welcomes this transaction that is a critical component of Century MFB’s transformation plan. It will strengthen Century MFB and support the stability of the microfinance banking sector,” the apex bank said in a statement.