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Moniepoint acquires 78% stake in Kenyan-based Sumac Microfinance Bank

June 4, 2025

Africa’s fastest-growing fintech, Moniepoint, acquires 78% stake in Kenyan-based Sumac Microfinance Bank. The deal, approved by the Competition Authority of Kenya (CAK), affirmed Moniepoint’s acquisition of a 78 per cent stake in the bank.

According to the regulator, the deal was granted after a clear deduction that it is unlikely to impact competition negatively or raise public outcry. The acquisition marks a significant milestone in Moniepoint’s expansion into the Kenyan financial sector.

“The Competition Authority of Kenya has approved the proposed acquisition of 78% shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc. unconditionally, noting that the transaction is unlikely to negatively impact competition in the market for provision of microfinance banking services in Kenya, nor elicit negative public interest concerns,” a statement from Moniepoint reads.

CAK further explained that the acquisition qualifies as a merger under the Competition Act Cap 504 of Kenya. The session defines a merger as the acquisition of control over another business through the purchase or lease of shares. In addition, it noted that since the combined turnover of Moniepoint and Sumac exceeded KES 1 bn ($7.7 million), the transaction required full regulatory review and approval.

With the deal, Moniepoint now stands at the brink of making its presence in one of Africa’s most dynamic financial markets. The acquisition comes amid a growing trend of Fintech organisations’ moves to expand their reach while trying to navigate various regulatory hurdles.

Founded in 2004 by a group of 14 investors, Sumac Microfinance Bank Limited (Sumac) is a Tier 2 microfinance institution and registered as a limited company and supervised by the National Bank of Kenya as a microfinance bank.

It was licensed as a microfinance deposit-taking institution in 2012 to offer various financial services, including monetary intermediation. With this approval, Moniepoint is about to join a list of Nigerian financial services providers that have expanded to Kenya.

Recently, Access Bank PLC, a subsidiary of Nigeria’s Access Holdings, secured approvals from the Central Bank of Kenya and Kenya’s National Treasury and Economic Planning for the acquisition of a 100 per cent shareholding of the National Bank of Kenya (NBK)

Also, Flutterwave has a significant presence in Kenya, offering payment solutions to businesses and individuals, including M-PESA payments and international transfers in the country.

More on Moniepoint’s deal

The East African country’s microfinance banking sector comprises 14 institutions categorised by market share into large (above five per cent), medium (1-5 per cent), and small (below one per cent) categories. Sumac is ranked as a medium-sized player with a market share of 4.3 per cent.

In the CAK’s assessment, it identified the relevant product market as the provision of microfinance banking services in Kenya, while the geographic market was classified as national, given Sumac’s countrywide operations.

It also emphasised that because Moniepoint does not currently operate in Kenya, the acquisition will not alter market structure or competition levels.

“Post-merger, the structure and concentration of the market for microfinance banking will remain unchanged, and the transaction is unlikely to raise competition concerns,” the regulator stated.

In terms of public interest implications, such as employment and sector competitiveness, CAK explained that there will be no job losses, and all current employees will be retained on their existing terms. Moreover, there will be no adverse effects on small and medium enterprises (SMEs) or the broader financial services industry.

“The proposed transaction will not result in negative public interest issues,” the CAK confirmed.

The acquisition comes after Moniepoint’s launch of MonieWorld, a groundbreaking digital banking and remittance platform designed to serve the financial needs of the African diaspora, starting with the UK-Nigeria corridor.

The initiative will enable UK residents to send money to Nigeria in just 17 seconds at highly competitive exchange rates.

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