Twiga Foods Founder Peter Njonjo’s firm acquires Maisha Microfinance Bank
08-05-2023 09:23:00 | by: Marlene Mutimawase | hits: 3014 | Tags:

A firm associated with Twiga Foods founder Peter Njonjo has acquired a controlling stake in the Maisha Microfinance Bank (Maisha MFB) after receiving regulatory approval from the Central Bank of Kenya (CBK).

Cactus Cantina Investments Limited (Cactus Cantina) has acquired a 55.8 percent shareholding in Maisha MFB.Cactus Cantina is incorporated in Kenya and is wholly owned by Shara Inc. (Shara).

Shara, which is incorporated in the state of Delaware, USA, and was co-founded by Grant Brooke and Njonjo, offers affordable financing to small and medium enterprises (SMEs) and their value chains in Nigeria and Kenya.

“The Central Bank of Kenya (CBK) announces the acquisition of 55.8 percent shareholding of Maisha Microfinance Bank Limited (Maisha MFB) by Cactus Cantina Investments Limited (Cactus Cantina) effective May 1, 2023,” CBK said in a statement.

It comes after the CBK approved the transaction on March 16, 2023, under Section 19 (4) of the Microfinance Act, and it was approved by the Cabinet Secretary for the National Treasury and Planning on April 4, 2023, pursuant to Section 19(3)(b) of the Microfinance Act.

Brooke and Njonjo are also the co-founders of Twiga Foods, a B2B food and grocery distribution company. Maisha MFB was granted a licence on May 21, 2016, to carry out nationwide microfinance bank business.The MFB’s branch and head office are located at Chester House, Nairobi.The institution’s target market is insurance policyholders, insurance agents, micro, small, and medium enterprises, and regular salaried people.

It is classified as a medium-sized microfinance bank with a market share of 1.4 percent of the microfinance banking sector as of December 31, 2022.

“The investment by Cactus Cantina will transform Maisha MFB business model in line with CBK’s vision for the microfinance banking sector and provide adequate resources to support business growth,” CBK added.

“CBK welcomes this transaction that will strengthen Maisha MFB and support the stability of Kenya’s microfinance banking sector.”