By Our Reporter
Letshego Africa Holdings has issued an official statement refuting media reports regarding alleged defaults on loans by its subsidiaries in Kenya and Uganda.
In the statement released on Monday, Letshego Africa Holdings emphasized that it has not defaulted on any of its financial obligations across its subsidiaries.
“Letshego Africa Holdings affirms that the Group has not defaulted nor failed in the servicing of any of its obligations in any of its subsidiaries. We confirm that claims of default on the part of Letshego Kenya and Uganda are false and incorrect,” the statement reads.
However, the microfinance bank acknowledged that while there were some breaches of covenants, these issues were transparently disclosed in their Integrated Annual Report for 2023 and they did not result in a failure to meet debt obligations.
“The Group’s Annual Results for 2023, first published on 22 March 2024, affirmed that the Group’s Expected Credit Loss (ECL) methodology had been adjusted, impacting 2023 results and resulting in the restatement of 2022 financial results. As a result of these adjustments and other areas of judgement, the Group breached some covenants with some of its funders which are disclosed fully in our Integrated Annual Report for 2023.” The statement further stated.
The company further reiterated that it remains in a strong financial position, with robust capitalization and liquidity.
“Beyond the covenant breaches, the Group has not failed on its debt obligations. For the two subsidiaries falsely and incorrectly mentioned in media reports, we wish to confirm that we did proactively engage with our funders and obtained formal ‘letters of no action’ for the covenant breaches. Letshego Africa Holdings remains well capitalized and in a solid liquidity position.” The statement concluded.
