The Liyu Microfinance Institution (LMFI) S.C. was established as micro financing institution. It was legally registered on November 25, 1997 as per Proclamation No 40/96 issued by the Ethiopian Government to regulate the activities of Micro Finance Institutions in Ethiopia and started operation in the second half 1998. Initially it was established by five shareholders with paid up and subscribed capitals of birr 200 thousand and 800 thousand respectively. However, currently the number of shareholders increased to 11 and itspaid up capitalreachedbirr 10 million.  As of June 30, 2019 total asset, total capital and loan outstanding balance of LMFI over 449 million,125 millionand 313 million respectively. 

LMFI started its operation in Addis Ababa and gradually expanded its outreaches to other regional states such as Oromia, Amhara and SNNPR.  Now a days LMFI has 21 branches and 12 sub- branches which provide financial service such as credit, saving and credit insurance to over 69,500 clients in both rural and urban areas.