April 2025 – Kinstellar has advised KMF, Kazakhstan’s largest microfinance organisation, on obtaining the regulatory approval for its voluntary conversion into a second-tier bank. The approval, granted by the Agency for Regulation and Development of the Financial Market of Kazakhstan on 20 March 2025, marks a significant milestone in the country’s financial sector, aligning with President Kassym-Jomart Tokayev’s initiative to foster banking competition.
Since 2021, Kinstellar has been providing comprehensive legal support to KMF, including regulatory analysis, licensing assistance, guidance on corporate governance and ownership structure. During this period, KMF’s assets grew by 218% to KZT 336.3 billion, while its loan portfolio expanded by 206% to KZT 280.2 billion, reinforcing its status among Kazakhstan’s largest financial institutions.
Founded in 1997, KMF has played a key role in financing SMEs and agricultural enterprises. With its newly acquired banking status, it aims to expand financial inclusion, enhance regional coverage, and develop fintech solutions, including marketplace services. As the second microfinance institution in Kazakhstan to secure such approval, KMF is set to diversify its offerings and enhance its financial services to better serve businesses and individuals.
As the financial landscape evolves, Kinstellar continues to be the trusted advisor for institutions seeking to explore the potential of becoming a bank, guiding them through regulatory complexities and unlocking new opportunities for growth.
The team was led by Partner Adlet Yerkinbayev and included Counsel Yerlan Akhmetov, and Senior Associate Aigerim Raikhanova.