The Competition Authority of Kenya (CAK) has granted approval for the Nigerian financial technology firm Moniepoint to acquire a 78% stake in Sumac Microfinance Bank. This transaction signals Moniepoint’s imminent entry into Kenya’s highly regulated banking sector. The development follows an earlier unsuccessful attempt by Moniepoint to purchase a local payments company just five months prior.
This proposed acquisition, which remains subject to final approval from the Central Bank of Kenya (CBK), is poised to secure a significant position for Moniepoint within Kenya’s thriving mobile payments ecosystem, which is currently valued at an estimated $67.3 billion (KES 8.7 trillion). The deal underscores a growing strategy where fintech companies are electing to acquire established licensed local entities, effectively bypassing the lengthy and often uncertain regulatory application process for a new licence.
The CAK affirmed its decision in a recent statement, noting that the transaction is not expected to introduce negative public interest issues. Specifically, the Authority indicated there would be no associated employment losses, as all existing employees are set to be retained under their current employment conditions. Following this assessment, the Authority unconditionally approved the proposed acquisition of 78% shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc.
Sumac Microfinance Bank was established in 2002, initially operating as a small investment group. Over time, it developed into a fully licensed microfinance bank, providing a diverse range of services including loans for small and medium enterprises, deposit accounts, money transfers, and foreign exchange trading. The CBK classifies Sumac as a medium sized microfinance bank, noting its $8.1 million (KES 1.05 billion) in assets and 43,800 active loan accounts, representing approximately a 2.8% share of the microfinance market.
The institution began serving the general public in 2004 under the name Sumac Credit, focusing its efforts on business owners who faced exclusion from traditional banking services. A decade later, it was awarded a microfinance banking licence by the Central Bank of Kenya.
Moniepoint was cofounded by Tosin Eniolorunda and Felix Ike in 2015. The company is registered in the United States and maintains its primary operational base in Nigeria, with an additional presence in the United Kingdom. It does not currently possess an established base in Kenya.
The CAK had previously approved Moniepoint’s intended acquisition of a local fintech providing credit to small businesses in August 2024. However, that agreement was ultimately cancelled shortly thereafter, with neither party publicly disclosing the reasons for its failure.
