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Micro lender Choice MFB seeks Sh170m for expansion

cash money
Choice MFB will sell 1.7 million new shares to existing shareholders at Sh100 each. FILE PHOTO | NMG 

Microfinance lender Choice MFB is seeking a capital injection of up to Sh170 million from shareholders as it looks to finance its expansion and boost lending capacity.

The lender, which mainly targets Kenyans living in the diaspora, will sell 1.7 million new shares to existing shareholders at Sh100 each, adding the 1.3 million units already in issue.

The microfinance bank’s chairman Bernard Kamiri told shareholders in a circular that the industry is currently going through a phase of capital raising and mergers as players position themselves for growth, hence the decision to make the cash call that will be concluded before the end of the 2019 financial year.

“The board has resolved to capitalise the microfinance with a view of expansion and deepening of the financial muscle of the institution. The goal is to sell the new shares in batches of 100 at Sh100 each, meaning a shareholder will make a minimum investment of Sh10,000,” said Mr Kamiri.

He added that a section of shareholders met in Nairobi in January and passed a resolution to raise the additional funds from the existing owners, a proposal that had already been ratified during their 2018 annual general meeting.

Choice Microfinance, which has its head office in Ongata Rongai, Kajiado County, was licensed by the Central Bank of Kenya as an MFB in May 2015.

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