Moniepoint’s 78% Takeover of Sumac Microfinance Gets Green Light from Kenya’s CAK
Kenya’s Competition Authority (CAK) has cleared Moniepoint Inc.’s plan to purchase a majority 78% ownership in Sumac Microfinance Bank Limited, determining that the deal will not harm competitive dynamics or serve against the public good.
The regulatory body issued a public statement confirming that this transaction, which required mandatory oversight due to its size, received full approval without conditions after thorough examination of its effects on Kenya’s microfinance industry.
Moniepoint Inc., which holds U.S. registration but operates as a Nigerian fintech enterprise, conducts its main business through Moniepoint Microfinance Bank in Nigeria.
This Sumac purchase represents Moniepoint’s inaugural entry into Kenya’s financial services market.
Established in 2002, Sumac Microfinance operates as a licensed deposit-taking microfinance provider in Kenya, delivering various financial services such as monetary intermediation, credit facilities, deposit collection, leasing arrangements, insurance brokerage, money transfers, and foreign exchange operations.
CAK’s approval stemmed from findings that this acquisition would not disrupt the existing competitive balance within Kenya’s microfinance banking sector.
The authority emphasized that since Moniepoint currently has no Kenyan operations, its market entry through acquisition cannot create excessive concentration or establish market dominance.
Sumac falls within the medium-tier category of microfinance banks, controlling 4.3% market share, which remains under the 5% benchmark that defines major market participants. Kenya categorizes its microfinance banking sector into three levels—large, medium, and small—using a comprehensive weighted index that considers assets, deposits, capital holdings, and loan portfolios.
By December 2023, Kenya hosted 14 licensed microfinance banks, where major institutions controlled 83.8% of total market share, medium-sized players held 15%, and smaller entities maintained slightly above 1%.
The regulatory authority also assessed how this transaction might affect public interest considerations, including employment levels, SME competitiveness, and domestic industry stability, concluding that no job cuts would occur since all existing Sumac staff members would continue under their current employment arrangements.
Furthermore, no negative consequences for small and medium enterprises (SMEs) or the wider financial services environment were detected.
“Specifically, there will be no employment loss, and all the current employees will be retained under the current terms.
“Premised on the above, the Authority approved the proposed acquisition of 78% shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc. unconditionally,” the Authority stated.
Following this regulatory green light, Moniepoint will become part of the growing group of Nigerian financial service companies expanding into East Africa.
Beyond Flutterwave, which provides various payment solutions including M-PESA integration and cross-border transfers in Kenya, recent reports indicate that Access Bank PLC, operating under Nigeria’s Access Holdings PLC, obtained necessary permissions from Kenya’s Central Bank (CBK) and the National Treasury and Economic Planning ministry to acquire complete ownership of National Bank of Kenya (NBK).
The bank confirmed that this acquisition has reached completion and will serve as a foundation for financial growth, combining NBK’s domestic market knowledge with Access Bank’s international presence to establish a more advanced and streamlined banking environment in Kenya.
