Sumac MFI gets Sh100m financing

Sumac Microfinance Bank has received Sh100 million in financing for onward lending

The loan from the German Development Bank's Sub-Saharan Investment arm will boost the bank's working capital and will be used for lending to small and medium enterprises.

The Regional MSME Investment Fund for Sub-Saharan Africa (Regmifa) aims to foster economic growth, create employment, generate income and alleviate poverty in sub-Saharan Africa by providing innovative financial products.

Sumac said the loan will go into financing Sumac’s working capital and will be lent out to SME’s and individuals at competitive interest rates.

“We want to aggressively penetrate the market and the funds from Regmifa will help us lend to more MSMEs,” Sumac Managing Director John Njihia said.

He added that the Regmifa board approved the funding after conducting thorough due diligence on the bank.

Regmifa was developed and established by the German Development Bank in close collaboration with development finance institutions and donors.