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 its paid up capital reached birr 10 million.  As of December 30, 2021 total asset, total capital and loan outstanding balance of LMFI over 938 million,175 million and 662 million respectively. 

LMF 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 28 branches and 12 sub- branches which provide financial service such as credit, saving and credit insurance to over 72,054 clients in both rural and urban areas.