Church-owned Smep microfinance seeks Sh2.6bn for expansion
What you need to know:
- National Council of Churches of Kenya (NCCK) General Secretary Canon Peter Karanja disclosed that NCCK, which is the majority shareholder had also agreed to cede part of its shareholding to meet the Central Bank of Kenya conditions ahead of it becoming a fully-fledged bank.
- This could see deposits rise to Sh17.2 billion thereby enabling them to offer affordable loans totalling Sh14 billion annually among other products via mobile phone-based and virtual platforms.
Shareholders of the church based SMEP Microfinance bank Thursday resolved to raise an additional Sh2.6 billion to fund its expansion strategy.
The plan will see its branch network rise to fifty with an asset base Sh22 billion and an anticipated 2 million customers.
National Council of Churches of Kenya (NCCK) General Secretary Canon Peter Karanja disclosed that NCCK, which is the majority shareholder had also agreed to cede part of its shareholding to meet the Central Bank of Kenya conditions ahead of it becoming a fully-fledged bank.
SMEP board chairman Nelson Kuria who is former CIC Insurance CEO said that the bank’s five year strategic growth plan would only be realised if the shareholders agree to sink in more funds to meet the planned modernisation of its facilities, hiring of more personnel and launch of an aggressive membership drive targeting the 12 million christians who are members of 29 churches that own SMEP.
The plan developed by Dhamanba Africa financial consultants expressed optimism that the bank could easily grow into a leading bank if all churches and their members banked with SMEP.
This could see deposits rise to Sh17.2 billion thereby enabling them to offer affordable loans totalling Sh14 billion annually among other products via mobile phone-based and virtual platforms.
Sunday banking services
SMEP’s chief executive Mr Symon Kamore also announced the introduction of Sunday banking services for all churches in Nairobi where offertories will be banked at its branches with plans on the way to offer similar services countrywide.
Churches conducting fundraising ceremonies will also enjoy banking services during the ceremonies together with armed security during and after the event.
The meeting also resolved to give the twenty nine churches that own majority shares in the bank first priority in issuance of shares before the public are invited to buy shares in the forty year old institution. The bank made a Sh2.5 million profit in the last financial year.
