MICROFINANCE INSTITUTION· Realized
Sumac Microfinance Bank.
Fast-growing and profitable microfinance institution in Kenya that offers consumer credit for clean cooking solutions
Investment summary (realized).
- Spark+ investment (realized)
- USD 2.0m
- Instrument
- Senior debt
- Facility type
- On-lending
- Portfolio category
- MICROFINANCE INSTITUTION
- Countries of operation
- Kenya
- E&S risk classification
- FI-3
- Portfolio status
- Realized (repaid / exited)
Technology and business model.
Consumer finance provider for clean cooking solutions
Investment narrative (as recorded at close).
Sumac Microfinance Bank is a regulated deposit-taking microfinance bank in Kenya focused on MSME lending, agriculture, and asset finance. As of late 2021, Sumac served ~2.6k borrowers and ~13k savers across five branches, and had formalized a clean-energy lending line, the Kawi Loan, to finance improved cookstoves, biodigesters, and related equipment in partnership with manufacturers including Burn Manufacturing and Sistema.bio.
Spark+ financing supported the scaling of Sumac’s clean-cooking portfolio under the Kawi Loan, expanding partnerships and on-lending for fuel-efficient cookstoves and biodigesters. The facility was designed to accelerate access to modern cooking solutions for households and micro-enterprises that could not afford upfront costs, while anchoring a commercially sustainable product within a regulated financial institution. The investment has since been realized.
Use of proceeds (as approved at investment).
Capital for on-lending to consumers for the purchase of clean cooking solutions
Company.
- Registered name
- Sumac Microfinance Bank