The Competition Authority of Kenya (CAK) has given its approval for Moniepoint Inc.’s proposed acquisition of a 78% stake in Sumac Microfinance Bank Limited, stating that the transaction does not pose any threat to market competition or public interest.
According to a statement released by the CAK, the acquisition, which meets the threshold for mandatory regulatory review, was approved unconditionally, following an extensive analysis of its impact on Kenya’s microfinance sector.
Moniepoint Inc., a U.S.-registered Nigerian fintech company, operates primarily through its Nigerian subsidiary, Moniepoint Microfinance Bank.
The acquisition of Sumac marks Moniepoint’s first foray into the Kenyan financial services landscape.
Sumac Microfinance, founded in 2002, is a licensed deposit-taking microfinance institution in Kenya offering a range of services including monetary intermediation, lending, deposit-taking, leasing, insurance agency, money transfer, and forex trading.
According to CAK, the deal was approved because the acquisition will not alter the competitive structure of the microfinance banking market in Kenya.
The Authority said it also evaluated the potential impact of the transaction on public interest factors such as employment, SME competitiveness, and local industry resilience, and concluded that there would be no job losses as all current Sumac employees would be retained under existing terms.
In addition, no adverse effects on small and medium enterprises (SMEs) or the broader financial services ecosystem were identified.
“Specifically, there will be no employment loss, and all the current employees will be retained under the current terms.
“Premised on the above, the Authority approved the proposed acquisition of 78% shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc. unconditionally,” the Authority stated.
With this approval, Moniepoint is about to join the clique of Nigerian financial services providers that have expanded to the East African country.