The Central Bank of Kenya (CBK) has licensed SUMAC DTM Limited to carry out nationwide deposit-taking microfinance business.This will be the 8th Deposit Taking Microfinance Institution in the country after licensed Century Deposit Taking Microfinance (DTM) Ltd to carry out nationwide deposit-taking microfinance business a month ago.

SUMAC DTM Limited becomes the eighth deposit taking microfinance institution (DTM) to be licensed following the licensing of six nationwide DTMs. These are Faulu Kenya DTM, Kenya Women Finance Trust DTM, SMEP DTM, REMU DTM, Rafiki DTM and Century DTM; and one community-based DTM, Uwezo DTM. SUMAC’s shareholding is pre-dominantly held by local Kenyan individual and corporate entities.

SUMAC DTM Limited has set up its head office and branch in Ngara in Nairobi. The DTMs primary focus is the Micro and Small Enterprises (SMEs) as well as the financially excluded populations. SUMAC also intends to target private individuals, such as salaried employees, professionals as well as students; and corporate and institutional market segments, such as NGOs, SACCOs, among others.

According to CBK, SMEs have the potential to contribute significantly to economic growth and poverty reduction through increased production and employment. To exploit this potential, SMEs must be encouraged to grow into bigger companies and in so doing they will create job opportunities and provide employment for Kenyans. The provision of appropriate financial products and services will thus continue to play a vital role in fostering a favorable environment for the growth of SMEs.

CBK says licensing of SUMAC DTM Ltd to focus on SMEs as the niche reiterates the Central Bank’s commitment to the development of an all-inclusive financial system. CBK says the growth of the microfinance industry will remain at the core of its mandate to enhance financial inclusion and promoting economic growth in Kenya in line with the country’s economic blue print, Vision 2030.