CEO STATEMENT

HOPE INTERNATIONAL ENTERS AGREEMENT TO PURCHASE MAJORITY STAKE IN SMEP MICROFINANCE BANK

January 23, 2023

I’m delighted to share that HOPE International has entered a share purchase agreement with SMEP Microfinance Bank in Kenya. This decision has been approved by their board of directors and shareholders and is now submitted to the Central Bank of Kenya for regulatory approval. If approved, HOPE will acquire a 51% controlling stake in SMEP, allowing us to offer technical expertise, strategic leadership, and other benefits of HOPE’s broader network of microfinance institutions.

SMEP operates 40 service branches around Kenya which offer a variety of financial products and insurance, serving more than 38,000 borrowers. The effects of the COVID-19 pandemic notwithstanding, SMEP has experienced significant growth over the past several years and is seeking to serve more families by increasing its outreach, products, and overall portfolio, which was more than $14 million at the end of 2022.

Beyond a shared focus on financial services, both HOPE and SMEP share a commitment to being Christ-centered in our mission and work. Having been founded as the development arm of the National Council of Churches in Kenya (NCCK), SMEP serves the more than 30 denominations of NCCK and seeks to promote holistic change through financial services to everyone they serve.

In 2021, SMEP shareholders authorized their board of directors to search for a new investor to raise additional capital for expansion plans, to meet regulatory requirements, and to bolster the organization. Completing our due diligence process in mid-2022, HOPE leadership is excited about the opportunity to invest in SMEP’s vision to equip more Kenyans to tackle poverty, grow thriving businesses, and provide for their families.

I’m grateful for SMEP’s CEO, Symon Kamore, and their chairman of the board, Dr. Nelson Kuria, as they’ve led the organization to this decision. This investment agreement, which is still subject to regulatory approval, will allow both SMEP and HOPE to deliver well on our shared mission to reach more families with Christ-centered financial services and the hope of the Gospel.

I look forward to what God has in store for both SMEP and HOPE as we work together.

Gratefully,

Peter Greer
President & CEO

For any inquiries regarding this new agreement, please email us at info@hopeinternational.org.

Share this announcement