Moniepoint Gets Green Light from CAK to Acquire 78% of Kenya’s Sumac Microfinance Bank

Nigerian-born fintech giant Moniepoint Inc. has received approval from the Competition Authority of Kenya (CAK) to acquire a 78% majority stake in Sumac Microfinance Bank. This marks a significant step in Moniepoint’s strategy to enter East Africa’s highly regulated financial services sector, although the deal remains subject to final approval from the Central Bank of Kenya (CBK).

This development follows Moniepoint’s earlier unsuccessful attempt to purchase Kenyan fintech KopoKopo, despite initial regulatory backing for that deal. The move to acquire Sumac underscores Moniepoint’s determination to establish a strong presence in Kenya.

If the CBK grants its approval, the acquisition will provide Moniepoint with an immediate operational foothold in Kenya’s lucrative US$67.3 billion mobile payments market, one of Africa’s most developed. This “buy-not-build” strategy allows established fintech firms to bypass the often lengthy and complex process of obtaining new operational licenses.

In its statement, the CAK noted, “This 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.”

Moniepoint, founded in 2015 by Tosin Eniolorunda and Felix Ike, is incorporated in the U.S. but headquartered in Nigeria, where it operates primarily through its subsidiaries, including Moniepoint Microfinance Bank and TeamApt. The company has been aggressively expanding its reach across Africa.

Kenya represents a key strategic market for Moniepoint. By acquiring Sumac, Moniepoint aims to gain an existing regulatory license, local market credibility, and an established customer network, rather than starting from scratch. This approach mirrors recent moves in the Kenyan banking sector, such as Access Bank’s acquisition of the National Bank of Kenya and KCB Group’s acquisition of Riverbank Solutions.

Sumac Microfinance Bank was founded in 2002, initially operating as Sumac Credit, before officially obtaining its microfinance banking license in 2012. The institution was established with a focus on serving underserved business owners often overlooked by mainstream commercial banks. Sumac has since grown into a medium-sized microfinance bank offering services such as SME loans, foreign exchange trading, and deposit-taking.

Currently, Sumac Microfinance Bank holds assets valued at approximately $8.1 million (KES 1.05 billion) and manages over 43,800 active loan accounts. According to the Central Bank of Kenya, Sumac holds a market share of around 2.8% to 4.3% within the microfinance sector, depending on the metric used.

While the CBK’s final approval is still pending, the CAK’s clearance provides significant momentum for the deal. For Moniepoint, acquiring Sumac is seen as a gateway to deepening its impact on the East African fintech ecosystem.

A successful completion of this acquisition is expected to enhance Sumac’s operations by integrating Moniepoint’s advanced digital tools, AI-driven credit analysis capabilities, and financial inclusion products that have proven effective in Nigeria. The move also reinforces the ongoing trend of consolidation within Africa’s financial services sector, as both fintechs and traditional banks increasingly turn to acquisitions as a strategic path for scaling operations and driving innovation amidst competitive pressures and regulatory complexities.