The Competition Authority of Kenya (CAK) has approved a planned acquisition by U.S.-based fintech company, Moniepoint Inc., which aims to acquire a controlling 78% stake in Sumac Microfinance Bank Limited. This move marks Moniepoint’s first major entry into Kenya’s financial services sector.
Sumac Microfinance Bank, which began operations in 2002 and was licensed by the Central Bank of Kenya (CBK) in 2012, is a medium-sized financial institution with about 4.3% market share in Kenya’s microfinance sector. The bank currently has over 43,800 active loan accounts and operates in a competitive field dominated by five major players that collectively control over 80% of the market.
In a statement released on Monday, CAK said the acquisition would not affect market competition in Kenya, since Moniepoint currently does not operate in the country.
“The transaction will not result in negative public interest issues. Specifically, there will be no employment loss and all current employees will be retained under current terms,” CAK confirmed.
The transaction is still subject to final approval from the Central Bank of Kenya, which oversees all licensed financial institutions in the country.
Moniepoint Inc., incorporated in the United States but headquartered in Nigeria, was founded in 2015 by Tosin Eniolorunda and Felix Ike. The company operates mainly through its Nigerian arms — Moniepoint Microfinance Bank and TeamApt — and has quickly risen to become a major player in African fintech, known for providing payment infrastructure and financial solutions to small and medium enterprises.
The acquisition of Sumac will grant Moniepoint a ready-made entry point into Kenya’s dynamic financial sector, particularly its $67.3 billion mobile payments market, considered one of the most developed on the continent. Kenya is home to M-Pesa, a mobile money innovation that revolutionized digital payments in Africa.
This deal comes just months after Moniepoint’s failed attempt to buy KopoKopo, a Kenyan payments firm. Although that transaction had received regulatory clearance, it was abruptly aborted, with the reasons never publicly disclosed. Despite the setback, Moniepoint remains one of Africa’s most aggressive fintech investors.
The acquisition also reflects a broader trend where large fintechs and banks prefer buying established players instead of applying for licenses from scratch. Such takeovers help bypass long regulatory wait times and allow quicker market entry.
In March this year, Kenya Commercial Bank (KCB) Group acquired Riverbank Solutions in a KSh 2 billion deal, while Access Bank, Nigeria’s largest bank by assets, received regulatory approval to acquire National Bank of Kenya.
If successfully completed, Moniepoint’s entry into Kenya through Sumac Microfinance Bank will strengthen its regional footprint and intensify competition in Kenya’s tech-driven financial services sector, especially in SME and retail banking segments.
