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The Competition Authority of Kenya (CAK) has unconditionally approved the proposed acquisition of a 78% shareholding in Sumac Microfinance Bank Limited by Moniepoint Inc.
The decision, published on June 2, 2025, follows a comprehensive review that concluded the transaction will not adversely affect competition or raise public interest concerns in Kenya’s microfinance sector.
Moniepoint Inc., the acquiring company, is a U.S.-incorporated private limited liability firm, best known for its fintech operations across Nigeria through subsidiaries TeamApt Limited and Moniepoint Microfinance Bank.
The acquisition marks Moniepoint’s first major entry into the Kenyan market.
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Moniepoint
Sumac Microfinance Bank, the target of the acquisition, is a deposit-taking microfinance institution headquartered in Nairobi.
Founded in 2001 and officially registered in 2002, the microfinance bank has grown from humble beginnings as a savings group into a licensed financial institution regulated by the Central Bank of Kenya.
It gained its deposit-taking license in 2012 and was rebranded as Sumac Microfinance Bank in 2015.
Today, it ranks among Kenya’s top medium-sized microfinance banks with a market share of 4.3%.
The roots of Sumac trace back to a group of professionals, led by current Chairman John Kibatha Njoroge, who began meeting in the early 2000s to form a ‘chama’ (informal savings group) amid fears surrounding the Y2K bug and rising job losses.
Kenya’s Sumac Microfinance Bank, which started as a small chama, has been acquired by Nigerian fintech giant Moniepoint in a billion-shilling deal.
What started as a monthly contribution model evolved into a credit institution and later a licensed microfinance bank with national operations.
By 2019, the bank’s loan book had grown from Sh289 million to over Sh1.4 billion, while customer deposits jumped from Sh100 million to over Sh700 million.
According to CAK’s merger analysis, the relevant product market was identified as the provision of microfinance banking services, while the geographic scope was determined to be national, given Sumac’s countrywide operations.
The authority noted that Moniepoint has no existing business in Kenya, ensuring the acquisition will not result in reduced competition or market concentration.
As of December 2023, Kenya had 14 licensed microfinance banks, grouped into large, medium, and small tiers based on market share.
The five largest institutions commanded a combined market share of 83.8%. Sumac was among six medium players contributing a total of 15% to the sector.
The bank’s total assets were valued at approximately Sh3.013 billion, supported by deposits amounting to around Sh1.282 billion.
Sumac maintained a total capital base of Sh369 million. The bank served 15,923 active deposit accounts and had 2,960 active loan accounts.
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Importantly, the authority also assessed public interest considerations such as employment, SME competitiveness, and sectoral impacts.
It found no expected job losses, with existing employees to be retained under current terms. The transaction was therefore cleared under the Competition Act and General Rules of 2019.
This acquisition signals growing investor interest in Kenya’s financial services market, particularly from international fintech players seeking entry through strategic partnerships or buyouts.
With this green light from CAK, Moniepoint Inc. is now poised to expand its footprint into East Africa, while Sumac stands to benefit from fresh capital, innovation, and potentially greater regional reach.