After acquiring 84.89 per cent stake in Century Microfinance Bank Ltd., the mobile and personal financing application, the branch has officially started operations in the banking sector.
In a statement viewed by Kenyans.co.ke and on Tuesday, February 8, the digital lender was approved by the Central Bank of Kenya (CBK) in accordance with the Microfinance Act.
The sale represents the first purchase of a banking institution by a digital lender in the country.
File image of Central Bank of Kenya in Nairobi.FILEBUSINESS Daily.
This follows the approval of the CBK under Section 19 (4) of the Microfinance Act and the approval of the Cabinet Secretary for National Treasury and Planning on January 7, 2022 in accordance with Section 19 (3) (b) of the Microfinance Act.
CBK welcomes this transaction, which is an important component of Century MFB’s transformation plan. It will strengthen the Century MFB and support the stability of the microfinance banking sector, “the statement read.
The approval comes after the National Treasury exempted the branch from the law limiting its stake in any microfinance institution to more than 25 per cent.
This follows a gazette notice signed by CS Yatani which approved the digital lending application from Section 19 of the Microfinance Act. This exemption will remain in force for four years till 2025.
Century MFB was licensed by CBK in September 2012, and has been in operation ever since. The local bank has two branches; One along Moi Avenue and the other in Gikomba.
In a statement, CBK lauded the bank for its initiatives in the technology sector and microfinance sector.
“Since the first MFB was launched in 2009, the financial landscape of Kenya has changed significantly.
Read part of the statement, “This is supported by technology, innovation and customers moving to services anytime, anywhere.”
