Maisha Microfinance Bank is seeking a capital injection of Sh1 billion to help the bank survive market pressures.
According to its Chief Executive Ireneus Gichana, the funding will also help the lender to invest in technology as well as fund growth in its microfinance lending business which has received fierce competition from mobile applications.
The bank has also been granted permission from Central Bank to exempt it from restrictions under ‘the provisions of section 19(1) of the Microfinance Act’ prohibiting ownership of more than 25 per cent by any single shareholder.
This is after its major shareholder, Kamu Investments, committed to the cash call alongside other shareholders. Kamu is, therefore, allowed to hold “more than 25 per cent of Maisha’s issued share capital for a period not exceeding four years with effect from March 1, 2019.”LISTEN TO ARTICLE