The Competition Authority of Kenya (CAK) has cleared a proposed acquisition by U.S.-based fintech Moniepoint Inc., which plans to take a controlling 78% stake in Sumac Microfinance Bank Limited, marking a significant entry into Kenya’s financial services sector.
- •Founded in 2002 and licensed in 2012, Sumac operates as a medium-sized microfinance bank with a market share of around 4.3% and over 43,800 active loan accounts.
- •The acquisition now awaits approval from the Central Bank of Kenya (CBK), which regulates all licensed financial institutions.
- •CAK’s review determined that since Moniepoint does not currently operate in the Kenyan market, the acquisition would not alter the competitive landscape, which is dominated by five large microfinance banks holding over 80% of the market.
“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,” the CAK statement said.
The approval comes five months after Moniepoint’s aborted bid to acquire Kenyan payments firm KopoKopo, a deal that collapsed despite regulatory backing. The reasons for its failure remain undisclosed, but it marked a rare stumble for one of Africa’s most aggressive fintech players.
Moniepoint Inc., incorporated in the U.S. and headquartered in Nigeria, was founded in 2015 by Tosin Eniolorunda and Felix Ike, and operates through subsidiaries including Moniepoint Microfinance Bank and TeamApt in Nigeria. The Sumac acquisition, if completed, would give Moniepoint an immediate entry point into Kenya’s US$67.3 billion mobile payments market, one of the continent’s most dynamic.
The deal also exemplifies part of a broader strategy by well-capitalized fintechs and institutions to sidestep lengthy licensing and innovation processes by buying established local operators.
The deal echoes recent trends where banks and established fintechs are on an acquisition quest for smaller fintechs and banks. In March this year, KCB Group acquired Riverbank Solutions for about KSh 2 billion. Nigeria’s Access Bank secured approval to buy National Bank of Kenya.
