The Competition Authority of Kenya has officially approved the proposed acquisition of a 78 per cent stake in Sumac Microfinance Bank Limited by U.S.-based fintech firm Moniepoint Inc.
The decision was given unconditionally, with the regulator noting that the transaction was unlikely to negatively impact competition in the Kenyan microfinance sector or raise public interest concerns.
Moniepoint Inc., a private limited liability company incorporated in the United States, owns two subsidiaries in Nigeria — TeamApt Limited and Moniepoint Microfinance Bank Limited. The proposed acquisition marks a significant expansion of Moniepoint’s footprint into Kenya’s financial services market.
A release on its official X page on Tuesday stated that “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.”
Sumac Microfinance Bank Limited, established in 2002 and licensed as a microfinance deposit-taking institution in 2012, offers various financial services, including monetary intermediation, among others.
According to the CAK, the acquisition qualifies as a merger under the Competition Act Cap 504 of Kenya, which defines a merger as the acquisition of control over another business through means such as the purchase or lease of shares. Since the combined turnover or assets of Moniepoint and Sumac exceed KES 1 bn, the transaction required full regulatory review and approval.
In its assessment, the CAK 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.
Kenya’s microfinance banking sector is made up of 14 institutions grouped 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. The CAK noted 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,” the CAK stated, adding that “the transaction is unlikely to raise competition concerns.”
The authority also considered public interest implications, including employment and sector competitiveness. According to the parties involved, there will be no job losses, and all current employees will be retained on their existing terms.
“The proposed transaction will not result in negative public interest issues,” the CAK confirmed.
With the approval granted, Moniepoint is now poised to strengthen its presence in one of Africa’s most dynamic financial markets. The acquisition aligns with a growing trend of fintech companies expanding through strategic acquisitions to bypass lengthy licensing and regulatory hurdles.
