The Competition Authority of Kenya (CAK) has greenlit Nigerian fintech giant Moniepoint Inc.'s acquisition of a 78% stake in Sumac Microfinance Bank, a mid-sized licensed lender in Kenya. The deal, pending final approval from the Central Bank of Kenya (CBK), paves the way for Moniepoint to enter Kenya’s highly competitive $67.3 billion mobile payments market.
Sumac, originally established in 2001 as a savings and credit cooperative society, became a deposit-taking microfinance bank in 2012. As of December 2023, it holds a 4.3% share of Kenya’s microfinance market, with assets totaling KES 3.013 billion ($23 million), a share capital of KES 396 million ($3.4 million), and nearly 16,000 deposit accounts.
The acquisition allows Moniepoint to sidestep Kenya’s rigorous licensing process and immediately offer financial services in the country. This move follows the collapse of Moniepoint’s earlier bid to acquire local payments firm KopoKopo five months ago.
The CAK stated that the deal raises no public interest concerns, with no job losses expected and all Sumac employees retained under current terms. The authority’s review found no risk of market disruption, noting Sumac’s modest 4.3% market share and Moniepoint’s status as a new entrant, which eliminates fears of market dominance.
This acquisition marks Moniepoint’s first foray into Kenya’s financial services sector, joining other Nigerian firms expanding in East Africa. Notable examples include Access Bank’s recent acquisition of the National Bank of Kenya and Flutterwave’s operations in Kenya, offering M-PESA integrations and international payment services.
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