Nigerian fintech powerhouse Moniepoint has received a green light from the Competition Authority of Kenya (CAK) to acquire a 78% stake in Sumac Microfinance Bank. This marks a significant milestone in Moniepoint’s ambitions to expand into Kenya’s competitive and highly regulated financial services sector. The acquisition follows a previous, unsuccessful attempt by the company to purchase local payments provider KopoKopo.
Turning Setbacks into Opportunities
The approval comes less than five months after Moniepoint’s deal to acquire KopoKopo was scrapped for undisclosed reasons, despite having initially secured regulatory consent in August 2024. The failure of that transaction appears to have prompted Moniepoint to explore alternative routes to enter the market. With the Sumac deal, the company is now poised to gain a direct foothold in Kenya’s rapidly growing digital payments and banking ecosystem.
A Shortcut into the Mobile Money Market
By acquiring a licensed institution like Sumac, Moniepoint effectively sidesteps the often-lengthy and uncertain process of applying for fresh regulatory approval. The acquisition positions the Nigerian fintech within reach of Kenya’s mobile payments industry, which is valued at an estimated $67.3 billion (KES 8.7 trillion). This tactic reflects a growing trend among fintech firms that are opting to buy into local regulatory frameworks instead of building from scratch.
Regulators Signal Confidence in the Deal
The CAK stated that the proposed transaction raises no concerns related to public interest, particularly in terms of employment stability. According to the authority, all existing Sumac employees will be retained under their current terms, ensuring continuity in operations. With this assurance, the competition watchdog has given the deal an unconditional approval, pending final consent from the Central Bank of Kenya (CBK).
Sumac’s Journey from Credit Provider to Licensed Bank
Sumac began its operations in 2002 as a modest investment club and grew into a registered microfinance institution over time. By 2014, it had obtained a microfinance banking licence from the CBK and now offers a range of services, including SME lending, deposit accounts, money transfers, and forex trading. With assets valued at $8.1 million (KES 1.05 billion) and 43,800 active loan accounts, Sumac currently holds a 2.8% share of the microfinance sector, making it a mid-tier player in the industry.
Moniepoint’s Expanding Global Ambitions
Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint is incorporated in the United States but primarily operates in Nigeria, with additional presence in the U.K. The fintech firm has quickly grown into a dominant force in Nigeria’s digital financial services space, offering business banking and payment solutions to small and medium-sized enterprises. This Kenyan acquisition marks Moniepoint’s first real push into East Africa, highlighting its aspirations to become a pan-African fintech leader.
While the CAK has granted its approval, the acquisition still hinges on the nod from Kenya’s central bank, which oversees banking licences and financial sector integrity. Should the CBK approve the deal, Moniepoint will not only gain operational access to Kenya’s market but also add regulatory credibility to its growing African portfolio. The move signals a broader strategy among African fintechs to expand regionally by acquiring existing licensed entities, enabling quicker and more seamless market entry.