Kenya: SMEP Deposit Taking Microfinance in capital drive
By Margaret Wahito, Capital FM
SMEP Deposit Taking Microfinance (SMEP DTM), plans to raise substantial new equity capital through unlisted offer of shares to drive its national expansion plans.
The eligible investors will include SMEP DTM customers and employees, member churches of the National Council of churches of Kenya (NCCK) and NCCK staff. NCCK is the sole shareholder of SMEP DTM.
Commenting on the project, SMEP DTM Chairman Gabriel Kivuti however said the offer is still subject to approval by the Capital Markets Authority.
He said the majority of the funds will be used to reduce its reliance on debt financing to on lend to customers.
“This will result to increased customer satisfaction, and better our margins,” he added.
The funds will also be used in the construction of a new office building on its current property on Kirichwa Road, Kilimani in Nairobi and upgrading a number of its existing outlets across Kenya into full deposit taking branches.
NCCK General Secretary Canon Peter Karanja said: “NCCK believes that the church ought to reposition itself to play a more active role in the economic development of Kenya. To achieve this goal, the huge potential of the Church must be consolidated.”
The micro finance has appointed Standard Investment Bank as Lead Transaction Advisor. The bank will also partner with Financial Analytics as a Joint Financial Advisor.
Mboya Wangongu and Waiyaki Advocates will be the Legal Advisor while Image Registrars will be the Receiving Agent and Registrar.