Kenya’s Competition Authority has approved Moniepoint Inc.’s acquisition of a 78% stake in Sumac Microfinance Bank Limited, clearing the way for the Nigerian fintech giant’s entry into the East African nation’s financial services sector. The approval follows a comprehensive review by the Competition Authority of Kenya (CAK), which concluded that the transaction poses no threat to market competition or public interest.
Moniepoint, a U.S.-registered Nigerian company best known for its operations through Moniepoint Microfinance Bank in Nigeria, is making its first major investment in Kenya through this deal. The CAK noted that the transaction passed all regulatory thresholds and was approved unconditionally.
Founded in 2002, Sumac Microfinance is a licensed deposit-taking institution in Kenya offering services such as lending, deposit-taking, insurance, leasing, foreign exchange, and money transfers. With a market share of 4.3%, Sumac is classified as a medium-sized microfinance bank. Kenya’s microfinance industry is divided into three tiers—large, medium, and small—based on metrics like assets, capital, and loan portfolios. As of December 2023, large institutions dominated the market with 83.8% share, while medium-sized banks, like Sumac, accounted for 15%.
The CAK emphasized that Moniepoint’s acquisition will not distort competition, as the company currently has no operations in Kenya. The move is expected to expand the financial services landscape rather than consolidate market power.
On the public interest front, the Authority confirmed that no jobs would be lost, and all current employees of Sumac will be retained under existing terms. It also found no risks to SME competitiveness or financial stability in the country.
“This acquisition meets all criteria and poses no competition or public interest concerns. It has, therefore, been approved unconditionally,” the CAK stated.
Moniepoint’s entry into Kenya marks another milestone in the expansion of Nigerian financial institutions across Africa. The fintech now joins other Nigerian entities like Flutterwave, which offers mobile and international payment services in Kenya, and Access Bank PLC, which recently completed the acquisition of the National Bank of Kenya.
Access Bank’s move was approved by both the Central Bank of Kenya and the country’s National Treasury and Economic Planning Ministry. The bank plans to leverage its acquisition to drive financial expansion by combining the local expertise of NBK with Access Bank’s broader regional network and capabilities.
Moniepoint’s arrival is expected to boost digital financial inclusion and intensify competition in Kenya’s microfinance space, especially in the SME lending and financial technology segments.
