The Competition Authority of Kenya has granted approval for Nigerian fintech firm Moniepoint to acquire a 78% stake in Sumac Microfinance Bank, marking a significant step in Moniepoint’s entry into Kenya’s tightly regulated banking sector.
The deal, however, remains subject to final approval by the Central Bank of Kenya. If completed, it will give Moniepoint a strategic foothold in Kenya’s lucrative mobile payments market, which is estimated to be worth $67.3 billion (KES 8.7 trillion).
This development comes just five months after Moniepoint’s earlier attempt to acquire Kenyan payments firm KopoKopo collapsed under undisclosed circumstances. The fintech is now pursuing a different route—acquiring a licensed institution—as a way to bypass the lengthy and often uncertain regulatory approval process typically faced by foreign entrants.
According to a statement released by CAK on Monday, the acquisition is not expected to negatively affect public interest. “Specifically, there will be no employment loss, and all the current employees will be retained under current terms,” the authority noted. “Premised on the above, the authority approved the proposed acquisition of 78% shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc. unconditionally.”
Sumac, founded in 2002 as a small investment group, became a licensed microfinance bank in 2012. It offers a range of services including SME loans, savings, money transfers, and foreign exchange trading. As of the latest figures, Sumac holds assets worth $8.1 million (KES 1.05 billion), with 43,800 active loan accounts and a 2.8% share of the microfinance market, categorizing it as a medium-sized institution under CBK guidelines.
Moniepoint, founded in 2015 by Tosin Eniolorunda and Felix Ike, is headquartered in the U.S. and operates primarily in Nigeria, with a presence in the U.K. but no prior base in Kenya. The acquisition of Sumac would mark its first operational footprint in East Africa.
As more fintechs seek to penetrate African banking markets, acquisitions of local licensed players are emerging as a preferred strategy—offering faster market access and regulatory alignment in a rapidly digitizing financial landscape.
