Moniepoint in talks to acquire 78% of Kenya's Sumac Microfinance Bank after regulatory nod

The news:

• Moniepoint gets regulatory motion to get 78% of Sumac Microfinance Bank successful Kenya.
• Sumac is simply a medium-sized Kenyan microfinance slope with KES 3 cardinal ($23 million) successful assets.
• Moniepoint confirms the woody is pending finalisation, with updates to follow.

Moniepoint Inc. could marque an introduction into the Kenyan marketplace aft securing regulatory support to get a bulk involvement successful Sumac Microfinance Bank. The Competition Authority of Kenya (CAK) has granted the Nigerian fintech a greenish airy to acquisition 78% of the Nairobi-based microfinance institution.

A palmy acquisition could connection Moniepoint, which already operates extensively successful Nigeria, a ceremonial foothold successful East Africa; an indispensable measurement successful its broader program to go a pan-African integer fiscal powerhouse.

The institution aims to standard its offering of integer outgo and banking services to Kenya’s immense basal of mobile-first consumers and businesses.

Sumac, which began arsenic a savings and recognition cooperative nine successful 2001, transformed into a deposit-taking microfinance slope successful 2012. It presently commands 4.3% of Kenya’s microfinance market, with KES 3.013 cardinal ($23 million) successful assets and astir 16,000 deposit accounts arsenic of December 2023.

Despite this regulatory milestone, the woody has yet to close. In a connection shared with Techpoint Africa, Moniepoint noted that “regulatory support has been received from the Competition Authority of Kenya for a imaginable transaction with Sumac Microfinance Bank. Further updates volition beryllium fixed arsenic appropriate.”

The CAK’s reappraisal concluded that the acquisition is improbable to trim contention oregon negatively interaction nationalist interest, arsenic Moniepoint presently has nary existing operations successful Kenya. The regulator besides clarified that the transaction volition not alteration Sumac’s marketplace stock nor interaction pricing oregon user choice.

This announcement comes astir a twelvemonth aft Moniepoint reportedly attempted to get KopoKopo, a Kenyan payments company. That woody that is yet to materialise.

As the fintech assemblage crossed the continent continues to consolidate, Moniepoint’s strategical acquisition signals growing involvement from African unicorns looking to replicate their occurrence successful caller determination markets.

The deal, if finalised, could spot Sumac payment from accrued capital, innovation, and entree to Moniepoint’s broader fiscal exertion infrastructure.