HOPE International purchases majority stake in SMEP Microfinance Bank

OFFICIAL ANNOUNCEMENT

MEDIA CONTACTS

Becky Svendsen Harbaugh, HOPE International
rsvendsen@hopeinternational.org

Symon Kamore, SMEP Microfinance Bank
skamore@smep.co.ke

Nairobi, Kenya/Lancaster, PA, U.S. – October 18, 2023 – SMEP Microfinance Bank (“SMEP”) has completed a new shares purchase agreement with HOPE International (“HOPE”), a global network of Christ-centered microfinance institutions and savings group programs operating in more than 20 countries. The transaction will give HOPE a 51% controlling stake in SMEP and has been approved by the Central Bank of Kenya.

SMEP operates 39 service branches around Kenya that offer a variety of financial products and insurance, serving more than 38,000 borrowers. SMEP has experienced significant growth over the past several years and is seeking to serve more families by increasing its number of branch offices, products, and overall portfolio, which was more than $14 million (U.S.) at the end of 2022.

As part of the agreement, SMEP will join the HOPE International network. Dr. Nelson Kuria will continue to serve as chair of SMEP’s board, and Symon Kamore will continue to serve as CEO.

“With HOPE International’s experience in the microfinance sector, we are strengthening SMEP’s current position as a competitive and growing institution. Furthermore, because of HOPE’s Christ-centered values, this change allows us to deliver well on our core mission to help Kenyan families address material and spiritual poverty,” shares Symon.

HOPE has more than 25 years of experience in spiritually integrated microfinance work and operates financial institutions in other African counties such as Burundi, the Republic of Congo, and Rwanda. HOPE’s savings group model also empowers local churches and church networks to integrate savings-based financial ministries into rural and urban communities, including those in Kenya, Uganda, Tanzania. With this experience, HOPE will be able to offer SMEP technical expertise, strategic leadership, and other benefits of their broader network.

“We have the highest respect for the SMEP team and board. HOPE and SMEP are missionally aligned, committed to excellence, and eager to serve many more families in Kenya together,” shares HOPE’s president and CEO, Peter Greer.

While Kenya has the most developed financial market in East Africa, 16% of the population—some 8 million people—remains unbanked, with about 16% live in extreme poverty. Additionally, Kenya’s population is incredibly young, with 73% of the country’s 50 million under the age of 30 and facing a lack of available jobs. Most SMEP bank branches are located in urban areas, with three more rural counties having no microfinance branches. This represents an opportunity for HOPE and SMEP to reach more underserved entrepreneurs, especially rural farmers.

Both HOPE and SMEP share a commitment to Christ-centered financial services and actively partner with local churches. Having been founded as the development arm of the National Council of Churches in Kenya (NCCK), SMEP serves the more than 30 denominations of the NCCK and seeks to offer spiritually integrated services to all the people they serve, regardless of religion.

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About HOPE International

HOPE International is a network of microfinance institutions and savings group programs operating in more than 20 countries in Africa, Asia, Latin America, and Eastern Europe. Its mission is to invest in the dreams of families in the world’s underserved communities as they proclaim and live the Gospel. HOPE works to empower men and women to break the cycles of material and spiritual poverty through discipleship, biblically based training, savings services, and loans. In 2022, microfinance institutions in the HOPE network had a loan portfolio of more than $63.7 million. In addition to microfinance programs, HOPE partners with thousands of local church denominations and Christ-centered partners worldwide to form savings groups. Learn more at hopeinternational.org.

About SMEP Microfinance Bank

Small and Medium Enterprise Program (SMEP) is a microfinance bank in Kenya. SMEP is a regulated deposit-taking Christian microfinance bank owned by the National Council of Churches of Kenya (NCCK) and the fourth largest microfinance bank in Kenya. As of 2020, SMEP had an estimated market share of 5% of the Kenyan microfinance market. In addition to typical microfinance offerings, the firm has achieved a robust third-party agent network, an insurance agency, mobile phone banking, and connectivity to the Visa payment network. SMEP offers a one-stop shop, providing a variety of financial solutions to its customers.

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