The former Specialized Financial and Promotional Institution (SFPI), currently rebranded as Liyu Microfinance Institution S.C (LMFI), began operations in June 1998, after receiving a business license from the National Bank of Ethiopia (NBE) in 25 November 1997. According to Ethiopian legislation, LMFI was established as a share company and provided a license to deliver microfinance services all over the nation. In an effort to fight poverty, the institution was established to offer both financial and non-financial services. LMFI was initially founded by five shareholders with paid-up and subscribed capitals of two hundred thousand and eight hundred thousand Birr, respectively. However, the number of shareholders progressively expanded to 11, the share capital of the company reached ten million, and the legal reserve now stands at two million.
LMFI began operating in Addis Ababa with 4 fully functional branches and steadily expanded its financial services over 3 regions and one city administration, namely Oromia, Amhara, and South Nations, Nationalities, and Peoples (SNNPs) National Regional States, as well as the Addis Ababa city, to reach 30 branch offices and 14 sub branch offices currently.