Old Mutual seeking a piece of Faulu DTM

Posted on July 3, 2013

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Old Mutual is on its way to become a deposit taking agency in a new arrangement that will see it acquire a controlling stake of Faulu DTM.

The acquisition though still at its initial stages will be an interesting watch in Kenya’s financial services sector.

according to information on the deal, the two firms have agreed on virtually everything with the deal waiting regulatory and legal approvals before the end of the year.

Faulu have over the last two years engaged about 20 potential suitors in the financial sector before Old Mutual came its way, it says. This was part of the divestiture process for the deposit taking micro finance institution.

Faulu started as a loan scheme back in 1991 in Mathare, Nairobi and has since grown considerably. In 2009, it was licensed by the Central Bank of Kenya as a deposit taking micro finance and is today a leading player in the credit business.

On the other hand, Old Mutual asserts that the acquisition will be inline with its ambition to become a financial services supermarket in East Africa, a venture which it has set aside close to half a billion dollars to achieve.

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