Kenyan group buys out two microlenders

A Mauritius-based financial services firm, Premfin Capital, which is owned by a group of Kenyan investors, has acquired two microfinance companies in Tanzania and Uganda.

The two firms, Gatsby Microfinance in Uganda and five Fanikiwa Microfinance in Tanzania, have a total of 11 branches in the two countries. Premfin Capital is headquartered in Mauritius with an investment portfolio spread across the region.

The firm is owned by Platcorp Holdings and Afrosuez Investments Ltd according to information availed by its management. Platcorp Holdings is also associated with NSE-listed investment firm, Centum.

James Mugambi, who is a one of the shareholders of Premfin Capital Limited and the current Managing Director of Premier Credit—a local micro-lender that targets small and medium-sized enterprises told the Business Daily on Thursday that the acquisition seeks to broaden their investment portfolio and accelerate growth.

“The new expansion involves acquiring six branches of Gatsby Microfinance in Uganda and five outlets of Fanikiwa Microfinance in Tanzania, with an intention to increase our operations in the region,’’ said Mr Mugambi.

“We also saw a credit gap to fill in and enter into the market with a credible organisation that we share the same business values,” said Mr Mugambi. Source: Business Daily Africa