Nigerian fintech giant Moniepoint Inc. has secured regulatory approval from the Competition Authority of Kenya (CAK) to acquire a 78% controlling stake in Sumac Microfinance Bank Limited, marking a significant strategic expansion into Kenya’s regulated financial services market.

The CAK granted unconditional approval after a thorough assessment, concluding that the acquisition would not adversely affect competition or public interest in Kenya’s microfinance banking sector. Sumac, established in 2002 and licensed as a deposit-taking microfinance institution since 2012, holds about 4.3% market share in Kenya’s microfinance sector, categorizing it as a medium-sized player. Given that Moniepoint currently has no operations in Kenya, the deal will not lead to market dominance or concentration.

Sumac offers a broad range of financial services including lending, deposit-taking, foreign exchange trading, insurance agency, leasing, and money transfer services. The acquisition provides Moniepoint with a strong foothold in East Africa’s dynamic fintech ecosystem, enabling it to serve local businesses and potentially unlock further regional growth opportunities.

Moniepoint, incorporated in the United States with Nigerian subsidiaries Team apt Limited and Moniepoint Microfinance Bank Limited, is one of Africa’s leading fintech companies. It recently attained unicorn status after raising $110 million in a Series C funding round, valued at over $1 billion. The company processes approximately $17 billion in monthly transactions and is Nigeria’s largest merchant acquirer, powering most POS transactions in the country.

This acquisition follows Moniepoint’s earlier unsuccessful attempt to acquire Kenyan payments firm KopoKopo but now positions the company to expand its digital banking and payments offerings in one of Africa’s most vibrant financial hubs. The deal is subject to final approval by the Central Bank of Kenya (CBK).

The CAK also confirmed that the transaction would not result in job losses; all current Sumac employees will be retained under existing terms, alleviating concerns about corporate restructuring235.

Moniepoint’s entry into Kenya aligns with a broader trend of Nigerian fintech firms expanding across Africa, joining peers like Access Bank and Flutterwave, who have also made significant inroads into East Africa.