BUSINESSSMART MONEY

Chinese Billionaire Acquires Kenyan Microfinance Firm With One Branch

Share
Robin Duan Wei
Mr Robin Duan 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 (Ksh1.3 trillion) as at August 31, 2021. [Photo/ Courtesy]
Share

The Central Bank of Kenya (CBK) has announced the acquisition of 85 percent shareholding of Choice Microfinance Bank Limited (Choice MFB) by Wakanda Network Limited (Wakanda) effective October 22, 2021.

This follows CBK’s approval on September 21, 2021, under Section 19 (4) of the Microfinance Act and approval by the Cabinet Secretary for the National Treasury and Planning on October 5, 2021, pursuant to Section 19(3)(b) of the Microfinance Act.

Wakanda was incorporated in the United Kingdom on February 26, 2020, and is wholly
owned by Mr 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 (Ksh1.3 trillion) as at August 31, 2021.

Choice MFB was granted a licence by CBK on May 13, 2015, to carry out community
microfinance banking business within Kajiado County. The MFB has its Head Office and
one branch both located in Ongata Rongai Town, Kajiado County.

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

“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 customers drive towards Anytime Anywhere services. In response to this changing
terrain, CBK has been working with MFB’s to transform their operations,” said CBK in a statement.

“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 termed the transaction as a critical component of Choice MFB’s transformation
plan.

“It will strengthen Choice MFB and support the stability of the microfinance banking sector,” added CBK.

Read: Lupita Nyong’o Hits Back at Balala Over Magical Kenya Snub

>>> Family Bank Unveils Prepaid Cards Targeting Business Community Trading With The Chinese Market

Written by
FRANCIS MUTINDA -

FRANCIS MUTINDA is a content creator and editor with Business Today. Email: [email protected]

8 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
NSE performance 2024
BUSINESSSTOCKS

NSE Poised for Slow Trade After Two-Day Christmas Break

Kenyan equities market, the Nairobi Securities Exchange (NSE), is expected to remain...

kenya shilling vs dollar news
BUSINESSMARKETS

Kenya Shilling Stable Against Dollar, Lifted By Diaspora Remittances

The Kenya shilling remains stable against the U.S. dollar, supported by a...

Aga Khan University Hospital Biomass Project
BUSINESS

Aga Khan University Hospital Biomass Project Wins National Energy Globe Award

A Biomass boiler project commissioned by Aga Khan University Hospital, Nairobi (AKUH,...

Vivian Nalianya - Vivanet Solutions
BUSINESSENTERPRISE 101

Hellen Nalianya: Big Shift From Accounts Led to Instant Success in Tech World

After graduation, Hellen Nalianya interned at an audit firm for nine months...