- The loan comes barely five months after Sumac welcomed on board Badoer Investments, a Dubai-based firm, as a new partner. Badoer took up about 15.6 percent stake in the bank at Sh100 million giving the lender new financial muscle.
Sumac Microfinance Bank has received $2 million (Sh2 billion) loan from US-based Social Investment Managers & Advisors (Sima) to boost its loan portfolio in areas such as off-grid solar products.
Sumac CEO John Njihia said the loan will help the lender to break its financial constraints and expand the loan book to reach new customers.
“This loan gives us the opportunity to reach clients whom we couldn’t before owing to obvious financial constraints. We can promise Kenyans of our enduring commitment to helping them grow their businesses and their enterprises,” said Mr Njihia.
Sima is a social asset manager focused on offering commercial capital and appropriate advisory to bottom of the pyramid clients.
“The loan from Sima will help Sumac grow its loan portfolio to reach more individuals and businesses around Kenya who are in need of financial services” said Brian McConnell, Sima vice president.
The loan comes barely five months after Sumac welcomed on board Badoer Investments, a Dubai-based firm, as a new partner. Badoer took up about 15.6 percent stake in the bank at Sh100 million giving the lender new financial muscle.
In the year ended December 2017, Sumac’s market share grew by 0.7 percent to 1.3 percent. Its profit shrunk from Sh14 million to Sh4.6 million on account of increased expenses.
It held Sh413 million deposits as at end of last year and Mr Njihia said this has since grown to more than Sh500 million.
Two of Sumac’s branches are in Nairobi—one on Koinange Street and the other at Park Road in Ngara.
Others are in Nakuru Town and in Githunguri, Kiambu.
Microfinanciers who are regulated by the Central Bank of Kenya are seen as an attractive are of investment having been excluded from the rate capping regime implemented since late 2016.
However, banks remain dominant in the lending field.