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The Competition Authority of Kenya (CAK) has cleared Nigerian fintech Moniepoint to get a 78% involvement successful Sumac Microfinance Bank, paving the mode for its introduction into the country’s tightly regulated banking sector. The woody comes hardly 5 months aft Moniepoint’s earlier effort to buy payments steadfast KopoKopo fell through.
The deal, which is inactive taxable to support by the Central Bank of Kenya (CBK), would springiness Moniepoint a foothold successful Kenya’s lucrative mobile payments market, estimated to be $67.3 cardinal (KES 8.7 trillion). It besides points to a inclination wherever much fintechs are buying their mode successful by acquiring licensed section players, a shortcut astir the agelong and uncertain process of securing regulatory approval.
“As per the parties’ submissions, this transaction volition not effect successful antagonistic nationalist involvement issues. Specifically, determination volition beryllium nary employment loss, and each the existent employees volition beryllium retained nether existent terms,” CAK said successful a connection connected Monday. “Premised connected the above, the authorization approved the projected acquisition of 78% shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc. unconditionally.”
Founded successful 2002 arsenic a tiny concern group, Sumac has evolved into a licensed microfinance slope offering services ranging from SME loans and deposits to wealth transfers and forex trading. With $8.1 cardinal (KES 1.05 billion) successful assets and 43,800 progressive indebtedness accounts, Sumac is classified by the CBK arsenic a medium-sized microfinance bank, holding an estimated 2.8% stock of the microfinance market.
It opened to the nationalist successful 2004 nether the sanction Sumac Credit, targeting concern owners unopen retired by accepted banks. A decennary later, it secured a microfinance banking licence from the Central Bank of Kenya.
Moniepoint, founded by Tosin Eniolorunda and Felix Ike successful 2015, is registered successful the U.S. and chiefly based successful Nigeria. It besides has a beingness successful the U.K. and has nary basal successful Kenya.
In August 2024, the Competition Authority of Kenya approved Moniepoint’s planned acquisition of KopoKopo, a section fintech that provides recognition to tiny businesses. However, the woody collapsed soon after, with neither enactment disclosing the reasons.
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