Kenya Approves Moniepoint’s Acquisition of Majority Stake in Sumac Microfinance Bank

The Competition Authority of Kenya (CAK) has granted unconditional approval for fintech firm Moniepoint Inc. to acquire a 78% stake in Sumac Microfinance Bank Limited, marking a significant entry into Kenya’s financial services landscape.

In its decision, the CAK stated that the transaction poses no risk to competition within the microfinance sector and raises no public interest concerns. The approval allows Moniepoint, which currently operates subsidiaries TeamApt Limited and Moniepoint Microfinance Bank in Nigeria, to establish a foothold in Kenya without altering the market’s structure.

“This transaction is unlikely to negatively impact competition in the market for provision of microfinance banking services in Kenya, nor elicit negative public interest concerns,” CAK said in a statement released Tuesday via its official X (formerly Twitter) account.

Sumac Microfinance Bank, founded in 2002 and licensed as a deposit-taking microfinance institution in 2012, holds a 4.3% market share and is categorized as a medium-sized player in the sector. Kenya’s microfinance market comprises 14 licensed institutions classified by share size into large, medium, and small categories.

The authority determined that the acquisition qualifies as a merger under Kenya’s Competition Act (Cap 504), which mandates regulatory scrutiny for transactions involving companies with a combined turnover or assets exceeding KES 1 billion. Moniepoint, having no current operations in Kenya, was found not to affect the competitive dynamics post-acquisition.

“Post-merger, the structure and concentration of the market for microfinance banking will remain unchanged,” the CAK noted.

The authority also reviewed public interest factors, including potential impacts on employment and market competitiveness. It confirmed that no job losses are expected, and all existing employees will retain their current terms of employment.

The acquisition underscores a broader trend in African fintech, where companies are expanding into new markets through strategic acquisitions rather than building from the ground up — a move that often allows them to bypass extended licensing timelines.

With regulatory clearance secured, Moniepoint is now positioned to scale its operations into one of East Africa’s most vibrant financial markets, reinforcing its pan-African ambitions.

SOURCE: AGENCIES