Kenya next as Letshego advances sale of East African subsidiaries
Letshego, the Botswana-headquartered microfinance group, is advancing the sale of its subsidiaries in Uganda, Rwanda and Tanzania, with Kenya expected to be the next market put on the block, according to The EastAfrican.
The disposals form part of a wider review of the group’s East African footprint. Letshego has been reshaping its country portfolio to focus on markets where it can scale efficiently, while withdrawing from others. East Africa has historically been a significant part of the group’s cross-border lending franchise alongside its Southern African home base.
Founded in Gaborone in 1998, Letshego grew into one of the continent’s larger dedicated microfinance and inclusive finance providers, listed on the Botswana Stock Exchange and operating in multiple African countries. Its product range has centred on consumer loans, housing finance and deposit-taking services aimed at salaried employees and small entrepreneurs in markets that are often underserved by mainstream banks.
The pending Kenya divestiture, if confirmed, would mark a near-complete exit from the East African region for the group. Kenya remains one of Africa’s most developed retail financial markets, and its scale and competitive landscape have historically presented a steeper entry barrier for niche microfinance lenders compared with several of its neighbours.
As The EastAfrican reported, the Uganda, Rwanda and Tanzania transactions are progressing, with the Kenya disposal lined up to follow. The group has not publicly detailed buyer identities or completion timelines for the regional exits.
Sources
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