Microfinance bank Sumac has raised Sh130 million additional capital as it embarks on seeking approvals to diversify into forex trading and operating current accounts.
The lender, which was licensed by the Central Bank in 2012, raised the funds from a rights issue (Sh50 million) and contributions by Regional MSME Investment Fund for Sub-Saharan Africa (Sh50 million) and Micro Enterprises Support Programme Trust (Sh30 million).
Sumac Microfinance Bank chairman Kibatha Njoroge said the fund injection puts the micro lender in the league of the most capitalised deposit-taking microfinance institutions in the country.
“We are pursuing an ambitious strategy to grow our market share and a strong capital base is critical because we want to control a bigger share of the micro credit market,” he said. Sumac has applied for a forex licence as it diversifies its products, and is also seeking a requisite licence to start operating current accounts.
“Investors have confidence in our model of empowering micro, small and medium enterprises, and we want to continue supporting these businesses with the additional capital,” Njoroge said.
“Going into forex will enable us offer customers the whole range of financial products including loans, savings and current accounts.”
The cash injection comes soon after Sumac opened two more branches in Nairobi and at Githunguri in Kiambu county.