The Competition Authority of Kenya (CAK) has approved Moniepoint Inc.’s bid to acquire a 78% controlling interest in Sumac Microfinance Bank, setting the stage for the Nigerian fintech’s formal entry into the Kenyan financial services sector.
The Competition Authority of Kenya (CAK) has approved Moniepoint Inc.’s bid to acquire a 78% controlling interest in Sumac Microfinance Bank, setting the stage for the Nigerian fintech’s formal entry into the Kenyan financial services sector.
While the acquisition still awaits a final decision from the Central Bank of Kenya (CBK), the competition clearance marks a significant step forward for the deal.
Sumac Microfinance Bank, founded in 2002 and licensed by the CBK in 2012, holds a 4.3% share of Kenya’s microfinance market and manages over 43,800 active loan accounts.
According to the CAK, the transaction raises no public interest concerns, including employment stability, as all staff will retain their current positions and terms.
This development comes on the heels of Moniepoint’s unsuccessful attempt to acquire KopoKopo, a local digital payments firm.
That deal collapsed despite receiving regulatory approval, though no official reason was provided. The current Sumac deal could offer a more stable route into the Kenyan market.
Moniepoint, incorporated in the U.S. but operating mainly out of Nigeria, is known for its influence in digital banking and payment infrastructure.
Through its subsidiaries, Moniepoint Microfinance Bank and TeamApt, it supports over 10 million businesses and processes $17 billion monthly. The company has maintained a profit track record while scaling operations significantly within Nigeria.
By acquiring Sumac, Moniepoint gains immediate access to Kenya’s financial system and positions itself in a market worth $67.3 billion in mobile payments, an area dominated by players like M-PESA and EazzyPay.
Instead of applying for a fresh license, Moniepoint is following a growing playbook among fintechs: acquiring already-regulated financial institutions to bypass time-consuming licensing requirements and secure a faster operational start.
This approach is not new to Kenya. In recent months, other notable deals have followed similar paths.
KCB Group purchased Riverbank Solutions for KES 2 billion, and Nigeria’s Access Bank received approval to acquire National Bank of Kenya. Moniepoint’s strategy aligns with this broader shift toward consolidation and regional scaling.
Should the CBK grant final approval, Moniepoint will be positioned to connect its base in Nigeria with Kenya’s well-established mobile finance sector, strengthening its cross-border presence in one of Africa’s most competitive fintech corridors.
This move illustrates the growing sophistication of African fintechs, no longer content to expand organically, they are choosing acquisition as a tool to accelerate growth and sidestep friction in highly regulated environments.
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