Kenya Approves Moniepoint’s Entry with 78% Acquisition of Sumac Microfinance Bank

Kenya’s Competition Authority has granted approval for Moniepoint Inc.’s acquisition of a 78% stake in Sumac Microfinance Bank, marking the Nigerian fintech’s official entry into the Kenyan financial services sector. The approval came after a regulatory review, which concluded that the deal poses no threat to market competition or public interest. Moniepoint, a U.S.-registered company operating mainly in Nigeria through its microfinance arm, is now set to expand its footprint into East Africa.

The CAK emphasized that Moniepoint currently has no operations in Kenya, meaning the acquisition will not distort market dynamics or result in concentration. Sumac Microfinance Bank, established in 2002, is a licensed deposit-taking institution providing various financial services, including lending, leasing, insurance, and forex trading. With a market share of 4.3%, Sumac is classified as a medium-sized player in Kenya’s microfinance sector, which has 14 licensed banks segmented into large, medium, and small tiers.

The approval was granted unconditionally after a comprehensive evaluation of the acquisition’s impact on competition and market structure. The authority concluded that Moniepoint’s entry would not result in dominance or significant market share shifts, given Sumac’s moderate position in the sector. This development aligns with Kenya’s strategic openness to fintech-driven investments that can boost innovation in financial inclusion.

Importantly, the Competition Authority confirmed there would be no job losses as a result of the deal. All current employees of Sumac Microfinance will retain their positions under existing terms. The review also found no adverse impact on SMEs or the wider financial services ecosystem, reinforcing the acquisition’s alignment with public interest priorities, such as employment retention and industry stability.

This move makes Moniepoint the latest Nigerian financial entity to expand into Kenya, following in the footsteps of Flutterwave and Access Bank. Notably, Access Bank recently completed the acquisition of the National Bank of Kenya. These cross-border expansions signify a growing trend of Nigerian fintech and banking institutions leveraging regional synergies to broaden their presence and catalyze financial innovation across Africa.

Source: Nairametrics