The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has granted JSC “KMF Microfinance Organisation” permission to voluntarily reorganise and become a second-tier bank, positioning the move as part of the implementation of the President’s direction to increase competition in the banking sector. KMF is the second microfinance organisation to receive authorisation to convert into a bank, following the Agency’s approval for “BNK” Microfinance Organisation on 12 June 2024. KMF is described as Kazakhstan’s largest microfinance organisation and the market leader in microcredit, ranking first among 218 microfinance organisations with a market share exceeding 20%. As at 1 January 2025, assets were reported to have increased by KZT 181.8bn (218%) to KZT 336.3bn, and its loan portfolio by KZT 143.9bn (206%) to KZT 280.2bn, with a credit portfolio of KZT 284.5bn; the Agency indicated these metrics could place the future bank among Kazakhstan’s larger banks. KMF holds a Fitch long-term credit rating of B+ with a Stable outlook, operates 17 branches and 122 outlets nationwide, and is majority owned by the “KMF–Demeu” Corporate Fund (60.43%), with the remainder held by minority shareholders each below 10%. After conversion, KMF plans to expand SME lending, consumer lending and other banking services, alongside prioritising fintech offerings including marketplaces.

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