Nigerian fintech giant Moniepoint has received the green light from the Competition Authority of Kenya (CAK) to acquire a 78% stake in Sumac Microfinance Bank, marking a significant step in its push into East Africa’s tightly regulated banking sector. The move follows a failed bid to acquire local payments company KopoKopo just five months ago.
While the deal still awaits final approval from the Central Bank of Kenya (CBK), it positions Moniepoint to tap into Kenya’s massive mobile payments market, which is valued at an estimated $67.3 billion (KES 8.7 trillion). By acquiring a licensed institution like Sumac, Moniepoint may sidestep the often lengthy and complex licensing process a strategy increasingly used by fintechs looking to enter regulated African markets.
In a statement, CAK confirmed that the proposed acquisition raised no public interest concerns. “There will be no employment loss, and all current employees will be retained under existing terms,” the authority noted, granting the transaction unconditional approval.
Sumac Microfinance Bank, founded in 2002 as a small investment group, has grown into a mid-tier player in Kenya’s microfinance space. With over 43,000 active loan accounts and assets totaling $8.1 million (KES 1.05 billion), Sumac offers a mix of SME lending, deposits, money transfers, and forex trading. It began operations as Sumac Credit in 2004 and became a licensed microfinance bank a decade later.
Moniepoint, co-founded in 2015 by Tosin Eniolorunda and Felix Ike, is incorporated in the U.S. but operates primarily in Nigeria, with additional presence in the U.K. The Sumac acquisition would mark its first direct footprint in Kenya.
The fintech had previously tried to enter the market through a planned acquisition of KopoKopo, a Kenyan firm that provides credit and payment solutions to small businesses. That deal received CAK’s approval in August 2024 but ultimately fell apart, with both parties staying silent on the reasons behind the collapse.
Now, with Sumac in its sights and regulatory momentum on its side, Moniepoint appears ready to make a second and potentially more successful entry into Kenya’s competitive financial services landscape.