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Report: Kenya-based Equity Group considering fintech unit's future

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Report: Kenya-based Equity Group considering fintech unit's future

Kenya-based Equity Group Holdings PLC is considering whether to keep its mobile money unit Finserve Africa Ltd. as a separate business or run it as a division, Bloomberg News reported Aug. 28, citing people familiar with the matter.

The Nairobi-based lender is reviewing potential options for the financial technology unit, which is unlikely to meet its revenue target of $22 million in its first year as an independent subsidiary, according to the sources.

The review also comes after Finserve Africa's executive director of strategic execution, Eric Karobia, left to join Airtel Africa Plc's Ugandan unit as a director during the week. Earlier in August, the unit's managing director, Jack Ngare, departed to take up the same post at Microsoft Corp.'s newly launched research and development facility in Nairobi.

The sources noted that having Finserve Africa within Equity Group could assist the lender in better capitalizing on its partnership with local Telecom company Safaricom PLC. Equity Group expects to lend up to 420 million Kenyan shillings through the venture by way of targeting small businesses, according to the news wire.

As of Aug. 28, US$1 was equivalent to 103.41 Kenyan shillings.