The Competition Authority of Kenya (CAK) has approved Moniepoint’s proposed acquisition of a 78% stake in Sumac Microfinance Bank Limited, a major step towards the fintech company’s expansion into East Africa. The CAK granted the approval following a comprehensive check on possible threats to competition and public safety.
Confirming the approval, the CAK noted that Moniepoint has no current operations in Kenya, and therefore, its entry via acquisition will not lead to market concentration or dominance.
Additionally, the CAK said it evaluated how the acquisition will affect employment, SME competitiveness, and local industry resilience, concluding that there would be no job losses as all current Sumac employees would be retained under existing terms.
Founded in 2002, Sumac Microfinance is a licensed financial service provider in Kenya offering monetary intermediation, lending, deposit-taking, leasing, insurance agency, money transfer, and forex trading. It is currently classified as a medium-sized Microfinance bank, with a market share of 4.3%.
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With the acquisition, Moniepoint joins the elite club of Nigerian fintech and financial institutions that have spread their influence into the East African country.
Recall that Access Bank had recently completed the acquisition of National Bank of Kenya (NBK) after securing an approval from the Central Bank of Kenya (CBK) and Kenya’s National Treasury.
