Wakanda completes 85pc shareholding acquisition of Choice MFB

Wakanda Network Limited has completed the acquisition of 85% shareholding of Choice Microfinance Bank Limited effective October 22, 2021.

CBK had approved the transaction on September 21, 2021, allowing Wakanda, a firm incorporated in the United Kingdom on February 26, 2020, to acquire the Kenyan microfinance institution.

According to CBK, Wakanda is fully owned by Chinese national Robin Duan Wei.

“Mr. Wei is a successful Chinese entrepreneur, having founded Mobvista Inc., a digital advertising company listed at the Hong Kong Exchange and Clearing Limited with a market capitalization of USD 11.7 billion (Kshs. 1.3 trillion) as of August 31, 2021.

Choice MFB which is headquartered in Ongata Rongai Town, Kajiado County was granted a licence by CBK on May 13, 2015, to carry out community microfinance banking business within the county.

CBK data indicate that Choice MFB is categorised as a small microfinance bank with a market share of below 1% of the microfinance banking sector as of October 31, 2021.

In a statement released on Tuesday, CBK said since the first MFB became operational in 2009, the Kenyan financial sector landscape has transformed significantly supported by the high technology adoption by lenders and customers alike.

“In response to this changing terrain, CBK has been working with MFB’s to transform their operations. All MFB’s formulated transformation plans in 2020, to adapt to the New Normal. These plans are

anchored on review of business models to be customer-centric, leveraging on technology and

innovation, and strengthening capital and liquidity buffers.”

CBK further expects the acquisition to strengthen the microfinance institution and support the stability of the microfinance banking sector.