In a bold move to cement its presence in the East African financial ecosystem, Nigerian fintech powerhouse Moniepoint Inc. is set to acquire a 78 per cent controlling stake in Sumac Microfinance Bank Limited of Kenya. The acquisition, recently approved by the Competition Authority of Kenya (CAK), now awaits the final nod from the Central Bank of Kenya (CBK), which regulates the country’s financial institutions.
Founded in 2015, Moniepoint has rapidly grown to become one of Africa’s leading digital financial service providers. Through its subsidiaries—Moniepoint Microfinance Bank and TeamApt—the fintech has driven significant progress in financial inclusion across Nigeria. Now, its strategic expansion into Kenya signals a broader regional ambition.
Sumac Microfinance, a licensed microfinance institution since 2012, controls about 4.3% of Kenya’s microfinance banking market and services more than 43,800 active loan accounts. Despite being mid-sized, the bank is part of a highly competitive industry where five top players control over 80% of the market share.
Moniepoint’s acquisition is expected to inject fresh capital and innovation into Sumac’s operations. It also provides Moniepoint with immediate access to Kenya’s US$67.3 billion mobile payments market, which has been growing exponentially due to mobile money dominance by services like M-Pesa.
In its official statement, the CAK clarified that Moniepoint’s entry will not disrupt existing market dynamics since the firm currently has no footprint in Kenya. Furthermore, the deal is not expected to lead to any loss of jobs or negative public interest outcomes, with all Sumac employees to be retained under existing terms.
“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,” the CAK stated.
Earlier in 2025, Moniepoint made an attempt to acquire Kenyan payments firm KopoKopo. While the deal received regulatory support, it eventually collapsed without public explanation. The Sumac transaction now represents a second shot at market entry, and with regulatory backing already secured, industry insiders consider it a far more promising venture.
This acquisition aligns with a growing trend among African fintechs and traditional banks acquiring licensed local entities to fast-track expansion without lengthy licensing processes. For example, Access Bank Nigeria recently gained approval to acquire National Bank of Kenya, while KCB Group acquired Riverbank Solutions for KSh 2 billion.
By acquiring Sumac, Moniepoint positions itself to compete not only in the microfinance segment but also in Kenya’s fast-evolving fintech landscape, leveraging its strengths in digital banking, merchant payments, and lending solutions.
Pending approval from the Central Bank of Kenya, the deal is expected to close before Q4 2025. If successful, Moniepoint will likely roll out digital-first banking services, enhance Sumac’s existing infrastructure, and expand its offering to small businesses and underserved populations across Kenya.
Financial analysts note that Moniepoint’s market entry could spur more cross-border acquisitions across Africa’s fintech ecosystem. With regulatory bodies increasingly open to facilitating such partnerships, fintechs may continue using acquisition strategies to bypass red tape and scale rapidly.
“Moniepoint’s Kenya expansion highlights the strategic role fintechs are playing in bridging financial gaps across borders. This could accelerate the push for a unified African digital economy,” said fintech analyst Esther Njoroge.
As Moniepoint edges closer to completing its Sumac acquisition, all eyes will be on how this move shapes the future of fintech collaboration between West and East Africa