Loan –Mobile loan Application (App), Branch has expanded its services to the banking sector after acquiring 84.89% stake in Century Microfinance Bank Limited.
Branch released an official statement on Tuesday February 8 stating that it had been approved by the Central Bank of Kenya CBK to start business in mainstream banking sector. This is in accordance with the Microfinance Act.
The move by the loaning App service provider means it is the first digital lender to venture into banking services in the country.
“This follows CBK’s approval under Section 19 (4) of the Microfinance Act and approval by the Cabinet Secretary for the National Treasury and Planning on January 7, 2022, pursuant to Section 19 (3)(b) of the Microfinance Act.
“CBK welcomes this transaction that is a critical component of Century MFB’s transformation plan. It will strengthen Century MFB and support the stability of the microfinance banking sector,” partly read their statement.
Branch was exempted by the Treasury from the legal 25 percent limit that prohibits any digital lender from having more than 25 percent stake in micro-financing service as per the Gazette Notice signed by Cabinet Secretary Ukur Yatani.
The App has been one of the fastest growing online lenders in the country with a sustaining customer base that has enabled its steady growth in the local money market.
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