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The Competition Authority of Kenya (CAK) has given the green light to Moniepoint Inc., a U.S.-incorporated fintech firm, to acquire a 78% stake in Sumac Microfinance Bank Limited. The deal is now pending final approval from the Central Bank of Kenya (CBK), which regulates all licensed financial institutions in the country.
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Sumac Microfinance Bank, which has been in operation since 2002, holds a 4.3% market share and manages over 43,800 active loan accounts. According to the CAK, the acquisition would not negatively impact the market or lead to job losses. “According to the parties’ submissions, 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
This development follows Moniepoint’s previous attempt to acquire KopoKopo, a Kenyan payments company, which was not completed despite receiving regulatory approval. The acquisition of Sumac would grant Moniepoint access to Kenya’s mobile payments ecosystem, valued at $67.3 billion.
The deal is part of a larger trend in African financial markets, where fintechs and banks are acquiring smaller, licensed institutions to accelerate expansion and avoid lengthy regulatory processes. If finalised, the Sumac acquisition would give Moniepoint a foothold in one of East Africa’s most active financial landscapes.
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Jonathan Nwokpor
