Moniepoint has received approval to acquire a 78% stake in Kenya’s Sumac Microfinance Bank, marking a significant milestone in the Nigerian fintech’s growth strategy. The Competition Authority of Kenya (CAK) cleared the deal unconditionally, confirming it does not threaten competition or public welfare.

The CAK’s review concluded that the acquisition would not disrupt Kenya’s financial sector. Sumac holds a modest 4.3% share of the microfinance market, while Moniepoint is new to the country, eliminating concerns about market dominance or excessive concentration.

The regulator found no concerns regarding employment, confirming that the deal will not lead to any job losses. All Sumac staff will retain their positions under existing terms, providing reassurance to employees and observers concerned about potential corporate disruptions.

This acquisition represents Moniepoint’s inaugural entry into Kenya’s financial services market. The Nigerian fintech joins an expanding group of Nigerian companies making significant investments in East Africa.

For example, Access Bank recently completed its purchase of the National Bank of Kenya, while Flutterwave operates in the country offering services such as M-PESA integrations and international payments. This activity reflects a broader effort by Nigerian companies to expand their presence throughout Africa.

Established in 2002, Sumac provides a range of services including lending and forex trading. Moniepoint states that this acquisition will offer a solid foundation to support local businesses in Kenya and potentially open up further opportunities across the region.

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