Liyu Microfinance Institution S.C (LMFI), formerly known as Specialized Financial and Promotional Institution (SFPI) began operations in June 1998, after receiving a business license from the National Bank of Ethiopia (NBE) in November 1997. According to Ethiopian legislation, LMFI was established as a share company and licensed to deliver microfinance services all over the nation.

The Institution was founded by five shareholders with paid-up capital of ETB 200,000 and subscribed capitals ETB 800,000 to provide both financial and non-financial services in an effort to combat poverty. Currently, the number of shareholders progressively increased to 11 while the share capital of the company reached 75 million, and the legal reserve now stands at 5.6 million.

LMFI began operating in Addis Ababa with 4 fully functional branches and gradually expanded its financial services over 3 regions namely Oromia, Amhara, and Central Ethiopia National Regional States, as well as one city administration, Addis Ababa. LMFI managed to reach 30 branch offices and 14 sub branch offices out of which 10 branch offices are operating in Addis Ababa city administration while 15, 3 and 2 are operating in Oromia, Amhara and Central Ethiopia Regional states, respectively. In terms of sub branches, 11 are in the Amhara national regional states, and the remaining 3 is in Oromia region.

Bringing over 26 years of expertise in the microfinance sector, LMFI continues to provide tailored credit to its target market, including Women Entrepreneurs, Small and Medium Enterprises (SMEs), Micro and Small Enterprises (MSEs), smallholders, and other individuals engaged in income generating activities . The institution accepts deposits from the public and while also offering micro insurance services in accordance with National Bank of Ethiopia directives for group guarantee loans.