The Competition Authority of Kenya (CAK) has approved a proposed acquisition by United States-incorporated Nigerian fintech firm, Moniepoint Inc., paving the way for its entry into Kenya’s financial services sector through a controlling 78 per cent stake in Sumac Microfinance Bank Limited.

The transaction now awaits final approval from the Central Bank of Kenya (CBK), which oversees all licensed financial institutions in the country.

Sumac MFB, which began operations in 2002 and received its license in 2012, holds a market share of approximately 4.3 per cent and manages over 43,800 active loan accounts. Though medium-sized, the bank operates in a competitive environment dominated by five microfinance institutions that collectively control more than 80 per cent of the market.

The CAK, in its review, determined that Nigeria’s fintech, Moniepoint’s entry, would not alter existing market dynamics since the fintech does not currently have a presence in Kenya.

“According to the parties’ submissions, the transaction will not result in negative public interest issues. Specifically, there will be no employment loss and all current employees will be retained under current terms,” CAK noted in its approval statement.

This move follows Moniepoint’s unsuccessful attempt earlier this year to acquire KopoKopo, a Kenyan payments company.

Despite receiving regulatory backing, that deal was not completed. No reasons were provided for its collapse, which marked a rare setback for the company.

Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint Inc. is headquartered in Nigeria and operates through subsidiaries such as Moniepoint Microfinance Bank and TeamApt.

The acquisition of Sumac would provide Moniepoint with immediate access to Kenya’s mobile payments ecosystem, valued at US\$67.3 billion.

The deal aligns with a wider trend in African financial markets, where fintechs and banks are acquiring smaller, licensed institutions to accelerate expansion and avoid lengthy regulatory processes.

In recent months, KCB Group acquired Riverbank Solutions for approximately KSh 2 billion, while Nigeria’s Access Bank received regulatory approval to acquire National Bank of Kenya.

If finalised, the Sumac acquisition would give Moniepoint a direct foothold in one of East Africa’s most active financial landscapes.