The Competition Authority of Kenya (CAK) has cleared Nigerian fintech Moniepoint to acquire a 78% stake in Sumac Microfinance Bank, paving the way for its entry into the country’s tightly regulated banking sector. The deal comes barely five months after Moniepoint’s earlier attempt to buy payments firm KopoKopo fell through.
The deal, which is still subject to approval by the Central Bank of Kenya (CBK), would give Moniepoint a foothold in Kenya’s lucrative mobile payments market, estimated to be $67.3 billion (KES 8.7 trillion). It also points to a trend where more fintechs are buying their way in by acquiring licensed local players, a shortcut around the long and uncertain process of securing regulatory approval.
“As per the parties’ submissions, this transaction will not result in negative public interest issues. Specifically, there will be no employment loss, and all the current employees will be retained under current terms,” CAK said in a statement on Monday. “Premised on the above, the authority approved the proposed acquisition of 78% shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc. unconditionally.”
Founded in 2002 as a small investment group, Sumac has evolved into a licensed microfinance bank offering services ranging from SME loans and deposits to money transfers and forex trading. With $8.1 million (KES 1.05 billion) in assets and 43,800 active loan accounts, Sumac is classified by the CBK as a medium-sized microfinance bank, holding an estimated 2.8% share of the microfinance market.
It opened to the public in 2004 under the name Sumac Credit, targeting business owners shut out by traditional banks. A decade later, it secured a microfinance banking licence from the Central Bank of Kenya.
Moniepoint, founded by Tosin Eniolorunda and Felix Ike in 2015, is registered in the U.S. and primarily based in Nigeria. It also has a presence in the U.K. and has no base in Kenya.
In August 2024, the Competition Authority of Kenya approved Moniepoint’s planned acquisition of KopoKopo, a local fintech that provides credit to small businesses. However, the deal collapsed shortly after, with neither party disclosing the reasons.
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