Moniepoint Inc. has secured approval from the Competition Authority of Kenya (CAK) to acquire a 78% stake in Sumac Microfinance Bank Limited, pushing the Nigerian fintech closer to formally entering the East African financial market.
The transaction is still pending a green light from the Central Bank of Kenya (CBK), which has the final say on licensed financial institutions in the country.
For Moniepoint, this deal is a recalibration of strategy after a failed bid to acquire KopoKopo, a Kenyan payments firm, which fell through under unclear circumstances.
If this acquisition succeeds, the company will gain a regulatory shortcut and immediate access to a functioning microfinance operation in one of Africa’s most dynamic financial landscapes.
Sumac, which started out in 2002 and earned its deposit-taking licence in 2012, currently holds a market share of roughly 4.3% and manages over 43,000 active loan accounts.
Despite its medium size, Sumac operates in a sector where five players dominate over 80% of the market. It is not a major disruptor, but for Moniepoint, that’s not the point. This is about having a legal structure in place and boots on the ground.
The CAK, in its clearance decision, said, “According to the parties’ submissions, the transaction will not result in negative public interest issues. Specifically, there will be no employment loss and all current employees will be retained under current terms.”
With regulatory bodies now sensitive to foreign acquisitions, Moniepoint has managed to present a deal that ticks all the boxes; no job losses, no monopoly issues, and no disruption to consumer pricing or product access.
The deal also shows how fintechs are avoiding the long route of starting operations from scratch. Instead, they’re buying smaller, regulated entities to fast-track entry into new markets.
Moniepoint isn’t alone in this approach, Access Bank recently finalised its acquisition of National Bank of Kenya, and KCB Group acquired Riverbank Solutions for KSh 2 billion.
Founded in 2015, Moniepoint is headquartered in the U.S. but operates primarily out of Nigeria. Through its subsidiaries, including Moniepoint Microfinance Bank and TeamApt, the firm has built a strong reputation in digital banking. Now, it wants to replicate that growth in Kenya, starting with microfinance.
Kenya’s mobile money market is massive, valued at over $67 billion. While Sumac itself is not a digital-first bank, Moniepoint sees potential in layering its tech-driven services over Sumac’s existing framework. That’s where the growth could come from.
A spokesperson confirmed, “Regulatory approval has been received from the Competition Authority of Kenya for a potential transaction with Sumac Microfinance Bank. Further updates will be given as appropriate.”
