By Asha Elmi - Reporter
Somalia, 12 November 2025 — The Central Bank of Somalia (CBS) has granted its first regulatory licenses to non-deposit-taking microfinance institutions (NDMTFIs), marking a key step in strengthening the country’s financial sector.
The press release announcing the licenses was issued today, although it is dated 9 November 2025. Seven firms received licenses after meeting all regulatory requirements: KIMS Microfinance Institution, Bushra Microfinance Ltd, Maal Microfinance Ltd, Midnimo Microfinance, RAAS Microfinance, Asal Microfinance, and Haldoor Microfinance.
The licensing follows revisions to the Financial Institutions Law in May 2025 and the introduction of the Licensing Regulation for Non-Deposit-Taking MFIs.
CBS said the measures establish a legal framework for oversight, improving governance, transparency, and consumer protection.
“The licensing of the first group of microfinance providers is a historic milestone demonstrating progress in Somalia’s financial sector,” said CBS Governor Abdirahman Mohamed Abdullahi.
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“It reflects the Central Bank’s commitment to building an inclusive and reliable financial system that expands access to services for all Somali citizens.”
The Central Bank emphasized that the licensing period opened on 6 June 2025 and ran for six months, with applications accepted until 6 December 2025.
Firms that do not comply with licensing requirements may face legal action under the Financial Institutions Law.
Licensed microfinance firms are expected to provide small-scale financial services, particularly for households, small businesses, women, and youth who are not yet part of Somalia’s formal banking system.
