Moniepoint Inc., a leading Nigerian fintech, has received regulatory approval from the Competition Authority of Kenya (CAK) to acquire a 78% stake in Sumac Microfinance Bank, marking its potential entry into the East African market.
The deal, still pending finalization, could position Moniepoint as a key player in Kenya’s digital financial services sector.
Sumac, a Nairobi-based microfinance bank with KES 3 billion ($23 million) in assets, holds a 4.3% share of Kenya’s microfinance market. Originally a savings and credit cooperative society founded in 2001, Sumac transitioned into a deposit-taking institution in 2012 and currently serves nearly 16,000 deposit account holders.
The acquisition aligns with Moniepoint’s ambition to become a pan-African digital financial powerhouse. By leveraging its expertise in digital payments and banking services, the company aims to tap into Kenya’s mobile-first consumer and business base.
The CAK has stated that the deal is unlikely to harm competition or public interest, as Moniepoint has no prior operations in Kenya, and Sumac’s market share, pricing, and consumer choice will remain unaffected.
Moniepoint confirmed the regulatory milestone in a statement to Techpoint Africa, noting, “Further updates will be provided as appropriate.” If finalized, the deal could bolster Sumac with increased capital and access to Moniepoint’s advanced financial technology infrastructure.
This move follows Moniepoint’s reported but unmaterialized attempt to acquire Kenyan payments firm KopoKopo last year. As Africa’s fintech sector consolidates, Moniepoint’sstrategic expansion underscores the growing trend of African unicorns seeking to replicate their success across regional markets.