The news:
- Moniepoint gets regulatory nod to acquire 78% of Sumac Microfinance Bank in Kenya.
- Sumac is a medium-sized Kenyan microfinance bank with KES 3 billion ($23 million) in assets.
- Moniepoint confirms the deal is pending finalisation, with updates to follow.
Moniepoint Inc. could make an entry into the Kenyan market after securing regulatory approval to acquire a majority stake in Sumac Microfinance Bank. The Competition Authority of Kenya (CAK) has granted the Nigerian fintech a green light to purchase 78% of the Nairobi-based microfinance institution.
A successful acquisition could offer Moniepoint, which already operates extensively in Nigeria, a formal foothold in East Africa; an essential step in its broader plan to become a pan-African digital financial powerhouse.
The company aims to scale its offering of digital payment and banking services to Kenya’s vast base of mobile-first consumers and businesses.
Sumac, which began as a savings and credit cooperative society in 2001, transformed into a deposit-taking microfinance bank in 2012. It currently commands 4.3% of Kenya’s microfinance market, with KES 3.013 billion ($23 million) in assets and nearly 16,000 deposit accounts as of December 2023.
Despite this regulatory milestone, the deal has yet to close. In a statement shared with Techpoint Africa, Moniepoint noted that “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.”
The CAK’s review concluded that the acquisition is unlikely to reduce competition or negatively impact public interest, as Moniepoint currently has no existing operations in Kenya. The regulator also clarified that the transaction will not change Sumac’s market share nor impact pricing or consumer choice.
This announcement comes nearly a year after Moniepoint reportedly attempted to acquire KopoKopo, a Kenyan payments company. That deal that is yet to materialise.
As the fintech sector across the continent continues to consolidate, Moniepoint’s strategic acquisition signals growing interest from African unicorns looking to replicate their success in new regional markets.
The deal, if finalised, could see Sumac benefit from increased capital, innovation, and access to Moniepoint’s broader financial technology infrastructure.
