In a strategic move to deepen its pan-African expansion, Nigerian fintech company Moniepoint Inc. has received regulatory clearance from the Competition Authority of Kenya (CAK) to acquire a 78% stake in Sumac Microfinance Bank, a licensed deposit-taking institution based in Nairobi.

The approval marks a significant step in Moniepoint’s ambition to establish a formal presence in East Africa, reinforcing its vision to evolve into a continent-wide digital financial services leader. With operations already deeply rooted in Nigeria, the potential acquisition would give the fintech unicorn a gateway into Kenya’s rapidly growing fintech ecosystem.

Sumac Microfinance Bank, originally established in 2001 as a savings and credit cooperative society, transitioned into a licensed microfinance institution in 2012. As of December 2023, the bank held KES 3.013 billion (approximately $23 million) in assets and served nearly 16,000 deposit accounts, giving it a 4.3% share of Kenya’s microfinance banking sector.

In a statement to Techpoint Africa, Moniepoint confirmed the regulatory development: “Regulatory approval has been received from the Competition Authority of Kenya for a potential transaction with Sumac Microfinance Bank. Further updates will be given as appropriate.”

The CAK, in its review, determined that the proposed transaction would not lessen competition within the sector, nor would it adversely impact public interest. Given that Moniepoint has no existing operations in Kenya, the deal is unlikely to alter current market dynamics, pricing, or consumer choice.

This development follows Moniepoint’s previously reported—but unconsummated—interest in acquiring KopoKopo, a Kenyan digital payments firm, nearly a year ago. While that deal remains pending, the Sumac transaction suggests a renewed and more formalised approach to market entry.

If finalised, the acquisition is expected to provide Sumac with access to greater capital, technological innovation, and integration into Moniepoint’s financial infrastructure, including its digital banking, payment processing, and business support platforms.

As Africa’s fintech landscape continues to consolidate, Moniepoint’s move underscores the growing appetite among the continent’s top fintech players to scale across borders, replicating successful models in new and underserved markets.