The Competition Authority of Kenya (CAK) has given the green light to U.S.-incorporated Nigerian fintech, Moniepoint Inc., to acquire a 78% controlling stake in Sumac Microfinance Bank, paving the way for Moniepoint’s formal entry into Kenya’s burgeoning financial services ecosystem.

Sumac, founded in 2002 and licensed by the Central Bank of Kenya (CBK) in 2012, is a mid-tier player in Kenya’s microfinance sector with a 4.3% market share and more than 43,800 active loan accounts. The acquisition is still subject to CBK approval, but with CAK’s competition review complete, the path forward appears promising.

 

“The transaction will not result in negative public interest issues. Specifically, there will be no employment loss and all current employees will be retained under current terms,” the CAK noted.

Strategic Expansion After a Failed Bid

The regulatory nod comes just months after Moniepoint’s failed attempt to acquire Kenyan digital payments firm, KopoKopo – a deal that fell through despite having regulatory approval. The reasons for the collapse remain undisclosed, but it marked an unusual setback for one of Africa’s fastest-growing fintech firms.

Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint operates out of Nigeria through subsidiaries like Moniepoint Microfinance Bank and TeamApt. The company is incorporated in the U.S. and has rapidly evolved into a dominant player in Nigeria’s digital financial infrastructure, powering over 10 million businesses. Through its subsidiaries, it processes $17 billion monthly for customers while maintaining profitable operations.

With the Sumac acquisition, Moniepoint stands to gain a critical foothold in Kenya’s $67.3 billion mobile payments market – one of the most dynamic on the continent and home to giants like M-PESA and Equity Bank’s EazzyPay.

FUNDING | Nigerian Leading Merchant Fintech, MoniePoint, Raises $110 Million in Series C Funding to Become Africa’s Latest Unicorn

As Nigeria’s largest merchant acquirer, MoniePoint facilitates the majority of Nigeria’s POS transactions. https://t.co/g6neb7Dosu @moniepoint pic.twitter.com/SbfRoEPRxd

— BitKE (@BitcoinKE) October 30, 2024

Shortcut to Scale: Buying Into the Market

Moniepoint’s move reflects a growing trend among well-capitalized fintechs: bypassing lengthy licensing hurdles by acquiring already-regulated local entities. Rather than build from scratch, fintechs are choosing to acquire operational players with market familiarity and regulatory clearance.

This mirrors a string of recent fintech acquisition activity in Kenya:

  • KCB Group acquired Riverbank Solutions for around KES 2 billion in March 2025.

  • Access Bank Nigeria received regulatory approval to acquire National Bank of Kenya.

In this light, Moniepoint’s Sumac deal is more than just market entry – it’s a strategic leap into East Africa’s fintech corridor, offering immediate operational capabilities and regulatory presence.

If the CBK gives its final blessing, Moniepoint could become a powerful cross-border fintech presence, bridging Nigeria’s large unbanked population with Kenya’s mature mobile finance ecosystem.

 

 

 

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

__________________________________________