Sumac Microfinance Bank chief executive John Njihia. PHOTO | SALATON NJAU
Sumac Microfinance Bank is seeking Sh600 million from private equity (PE) firms after scaling up the requirement from the initial half a billion sought in late 2013.
The microfinancier’s incoming chief executive John Njihia said it is finalising talks and due diligence with a number of funds. Some PE firms are making presentations to their boards in the final stages of the funding.
Private equity firms take up to two years before they invest partly due to the rigorous due diligence they carry out before committing funds.
Mr Njihia said funding is the main challenge for the bank’s expansion plan encompassing investing in marketing, mobile banking platforms and getting linked to the national payments system.
“We want to have a sustained marketing campaign and invest in a robust ICT system,” said Mr Njihia. The micro bank had a core capital base of Sh185 million as at the end of 2014, which is above the Sh60 million statutory minimum, ranking it number nine among its peers.
Mr Njihia replaces Duncan Mwaniki.
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