Nigerian-born fintech Moniepoint Inc. has received clearance from the Competition Authority of Kenya (CAK) to acquire a 78% stake in Sumac Microfinance Bank, marking a significant move into East Africa’s highly regulated financial services space. The acquisition, however, remains subject to final approval by the Central Bank of Kenya (CBK).
This development comes just months after Moniepoint’s earlier attempt to purchase Kenyan fintech KopoKopo fell through, despite regulatory backing. The failed deal was a rare misstep for the fast-growing fintech, which has earned a reputation for aggressive expansion across Africa.
If approved by the CBK, the Sumac acquisition will provide Moniepoint with an immediate foothold in Kenya’s US$67.3 billion mobile payments market, one of the most vibrant and mature in Africa. It also represents a broader trend of fintech firms acquiring licensed local institutions to bypass the often lengthy and uncertain process of securing regulatory clearance for new entrants.
“This 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,” CAK noted in its statement.
From Nigeria to Nairobi: Moniepoint’s East African Expansion
Moniepoint, incorporated in the U.S. but headquartered in Nigeria, was founded in 2015 by Tosin Eniolorunda and Felix Ike. It operates primarily through its Nigerian subsidiaries, including Moniepoint Microfinance Bank and TeamApt, and is now setting its sights on new regional markets.
Kenya represents a strategic frontier. With no existing operations in the country, Moniepoint stands to gain regulatory presence, local credibility, and customer networks through Sumac—rather than building from the ground up.
This “buy-not-build” strategy mirrors moves by other institutions, including Nigeria’s Access Bank, which recently received clearance to acquire National Bank of Kenya, and KCB Group’s acquisition of Riverbank Solutions.
Who is Sumac Microfinance?
Founded in 2002 and initially operating as Sumac Credit, the institution officially became a licensed microfinance bank in 2012. Its roots lie in supporting underserved business owners who had been sidelined by mainstream commercial banks. Over the years, Sumac has evolved into a medium-sized microfinance bank offering a range of services including SME loans, forex trading, and deposit-taking.
Currently, Sumac holds assets worth approximately $8.1 million (KES 1.05 billion) and manages over 43,800 active loan accounts. The Central Bank of Kenya classifies it as holding around 2.8% to 4.3% of the microfinance market, depending on the measurement metric.
This acquisition gives Moniepoint a functioning infrastructure, a customer base, and a license that aligns with its strategy to rapidly scale financial access and digitization across Africa.
What Comes Next?
While the acquisition still awaits CBK’s final approval, the CAK’s green light provides significant momentum. For Moniepoint, Sumac is more than just a regulatory entry—it is a gateway to deepening its impact across the East African fintech ecosystem.
If successfully completed, the deal will not only elevate Moniepoint’s cross-border footprint but may also revitalize Sumac’s operations by integrating advanced digital tools, AI-driven credit analysis, and financial inclusion products proven successful in Nigeria.
The move reinforces the ongoing wave of consolidation in Africa’s financial services sector—where licensing barriers, competitive pressures, and infrastructure gaps are pushing fintechs and traditional banks alike to opt for acquisition as a path to scale and innovation.
