NAIROBI, Kenya — The Competition Authority of Kenya (CAK) has unconditionally approved the acquisition of a 78% stake in Sumac Microfinance Bank Limited by Moniepoint, a U.S.-based financial technology company.
The regulator found that the deal is unlikely to negatively affect market competition or trigger public interest concerns.
“The transaction is unlikely to negatively impact competition in the market for provision of microfinance banking services in Kenya,” said the Authority in a statement. “It does not elicit negative public interest concerns.”
Moniepoint incorporated in the United States, operates through two subsidiaries in Nigeria; TeamApt Limited and Moniepoint Microfinance Bank Limited.
The acquisition marks its formal entry into the Kenyan financial sector, targeting the country’s microfinance segment.
Founded in 2012, Sumac Microfinance Bank is a licensed deposit-taking microfinance institution engaged in monetary intermediation, leasing, deposit-taking, lending, insurance agency, money transfer, and forex trading.
It has grown steadily over the years, largely serving Kenyan SMEs and investment groups.
According to CAK, the deal qualifies as a merger under Sections 2 and 41 of the Competition Act, which govern transactions where one entity acquires control of another in Kenya.
Moniepoint’s entry met the regulatory threshold for mandatory notification and full analysis due to the combined turnover of the merging entities.
The Authority analyzed the relevant product and geographic markets and concluded that the deal falls within the microfinance banking sector at the national level.
Kenya currently has 14 licensed microfinance banks classified into large, medium, and small tiers, based on market share.
As of December 31, 2021, five large microfinance institutions held a combined market share of 43.8%, while six medium-sized players controlled 15%, and three small institutions held just 1.2%, according to data from the Central Bank of Kenya.
