Nigerian fintech powerhouse Moniepoint Inc. has taken a significant step toward expanding into East Africa, following the green light from the Competition Authority of Kenya (CAK) to acquire a 78% stake in Sumac Microfinance Bank Limited.
The acquisition, however, still awaits final approval from the Central Bank of Kenya (CBK), which oversees all licensed financial institutions in the country. If cleared, the deal will mark Moniepoint’s official entry into one of Africa’s most advanced and competitive financial ecosystems.
This move signals a strategic pivot for Moniepoint after a previously attempted acquisition of KopoKopo, a prominent Kenyan payment services company, fell through under undisclosed circumstances. The Sumac deal provides Moniepoint with a regulatory shortcut—offering immediate access to an operating financial institution with a customer base, infrastructure, and regulatory standing already in place.
Sumac Microfinance Bank, established in 2002 and licensed for deposit-taking in 2012, currently controls approximately 4.3% of Kenya’s microfinance market, servicing over 43,000 active loan accounts. Although not a dominant player in the space—where five institutions control more than 80% of the market—Sumac offers Moniepoint an established legal and operational base to layer its digital services onto.
In approving the transaction, the CAK emphasized that the deal does not raise public interest concerns. “According to the parties’ submissions, 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,” the Authority noted.
This approach aligns with a broader trend among African fintechs and banks: acquiring existing licensed entities as a faster route into new markets. Rather than building from the ground up—an often lengthy and uncertain process—players like Moniepoint are leveraging strategic acquisitions to scale across borders.
It’s a playbook others have followed. Nigerian banking giant Access Bank recently finalized its acquisition of National Bank of Kenya, while KCB Group acquired Riverbank Solutions in a KSh 2 billion deal.
Moniepoint, founded in 2015 and headquartered in the U.S. but operating primarily from Nigeria, has made a name for itself through its digital banking subsidiary, Moniepoint Microfinance Bank (formerly TeamApt). The company’s expansion into Kenya signals its ambition to extend that success to the East African region, beginning with microfinance.
Kenya’s mobile money ecosystem—valued at over $67 billion—is among the most sophisticated in the world. Though Sumac is not inherently a digital-first bank, Moniepoint sees significant opportunity in integrating its tech-enabled offerings to transform and scale Sumac’s services.
A company spokesperson confirmed the development: “Regulatory approval has been received from the Competition Authority of Kenya for a potential transaction with Sumac Microfinance Bank. Further updates will be given as appropriate.”
With the microfinance landscape evolving and digital finance gaining momentum, Moniepoint’s entry could inject fresh competition and innovation—while reinforcing the growing presence of Nigerian fintechs across Africa’s financial frontiers.
