The Competition Authority of Kenya (CAK) has approved the acquisition of 51 per cent of all issued shares of Smep Microfinance Bank by Hope Advancement without conditions.
Hope Advancement Inc. is a wholly-owned subsidiary of Hope International, a charitable entity registered in the United States of America.
SMEP Microfinance Bank is a public company incorporated in Kenya that offers financial services with a focus on group, SME and church banking.
“The approval has been granted based on the finding that the transaction is unlikely to negatively impact competition concerns nor elicit negative public interest concerns, the two key considerations during merger analysis,” said CAK in a statement.
Smep controls 4.9 per cent of the market share. Other players in the microfinance sector are Faulu (40.2 per cent), Kenya Women (33.5 per cent), and Rafiki Microfinance Bank (7.2 per cent).
The three institutions control a total of 80.2 per cent market share.
In the medium category, SMEP’s peers are Maisha, Caritas and Sumac, and U&I Microfinance Bank, which collectively controls a market share of 18.9 per cent.
Microfinance Banks in Kenya
- Cantas Microfinance Bank Limited
- Century Microfinance Bank Limited
- Choice Microfinance Bank Limited
- Daraia Microfinance Bank Limited
- Faulu Microfinance Bank Limited
- Kenya Women Microfinance Bank Limited
- KEY Microfinance Bank Limited
- Maisha Microfinance Bank Limited
- Muungano Microfinance Bank Limited
- Rafiki Microfinance Bank Limited
- SMEP Microfinance Bank Limited
- Sumac Microfinance Bank Limited
- U & I Microfinance Bank Limited
- Uwezo Microfinance Bank Limited