Moniepoint Gets Approval to Acquire Kenyan Bank after Access Bank's Acquisition of NBK

• Nigeria’s fintech, Moniepoint, has been approved by the Competition Authority of Kenya to acquire a 78% stake in Sumac MfB
• The deal will allow Moniepoint to enter Kenya's tightly regulated financial services market
• Experts say the deal shows how fintech is making inroads into the tightly regulated Kenyan market by acquiring licensed local players

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s fintech unicorn, Moniepoint, has been cleared by the Competition Authority of Kenya (CAK) to acquire a 78% stake in Kenya’s Sumac Microfinance Bank.

If completed, the deal will allow the Nigerian fintech to enter into Kenya’s tightly regulated banking sector.

Kenya promises no job losses in proposed deal

The move comes after Moniepoint’s plan to buy payment company Kopokopo collapsed.

The Sumac deal, althought yet to be approved by the Central Bank of Kenya, would allow Moniepoint access to Kenya’s booming mobile payment market, estimated at $67.3 billion.

Experts say the deal shows how fintechs are making inroads into the tightly regulated Kenyan market by acquiring licensed local players.

TechCabal reported that CAK disclosed that the transaction will not lead to job or employment losses and that all current employees will be retained under existing terms.

Sumac is a mid-sized MfB in Kenya

It disclosed that based on the above, it has approved the proposed acquisition of 78% shareholding of Sumac Microfinance Bank by Moniepoint unconditionally.

Sumac has evolved into a licensed microfinance bank since 2002 and offers services such as SME loans, deposits, money transfers, and forex trading.

The bank is rated as a medium-sized microfinance bank, with $8.1 million in assets and 43,800 active loan accounts.

It holds a 2.8% share of the microfinance market in the East African country.

Sumac opened the business in 2004 under Sumac Credit, targeting business owners disenfranchised by traditional banks.

After 10 years, Sumac secured a microfinance banking license from Kenya’s central bank.

Moniepoint becomes unicorn

Moniepoint was founded in 2015 by Tosin Eniolorunda and Felix Ike. It is registered in the US and based in Nigeria.

The fintech unicorn also has a presence in the UK and without a base in Kenya.

Moniepoint became a unicorn last year after a series C funding round led by Development Partners International (DPI) and including Google's Africa Investment Fund, which valued the company at over $1 billion, a milestone for African startups. 

The company plans to use the funds to expand its services across Africa, offering a comprehensive platform for businesses of all sizes, including digital payments, banking, foreign exchange, credit, and business management tools.

According to reports, CAK approved Moniepoint’s bid to acquire Kopokopo, a local Kenyan fintech that provides credit to SMEs.

However, the deal fell through after, with neither party explaining the reasons.

Access Bank completes full acquisition of NBK

Legit.ng earlier reported that National Bank of Kenya Limited (NBK) has been fully acquired by Access Bank Plc from KCB Group PLC (KCB Group).

The bank said in a statement on Friday that the development signified the conclusion of a transaction that began in March 2024 and that all regulatory approvals typically required for such a transaction had been obtained.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng