Nigerian Fintech Moniepoint Secures Approval to Enter Kenya’s Market

Nigerian fintech Moniepoint is poised to expand into Kenya’s financial sector following regulatory clearance for its proposed acquisition of a 78% stake in Sumac Microfinance Bank.

The green light from the Competition Authority of Kenya (CAK) positions Moniepoint for a strategic entry into East Africa’s high-growth digital finance space, pending final approval from the Central Bank of Kenya (CBK).

Sumac, established in 2002 and licensed as a microfinance bank a decade later, holds a 4.3% market share and manages over 43,800 active loan accounts. While mid-sized by sector standards, the acquisition gives Moniepoint a ready-made operational base in Kenya without the delays of licensing from scratch, a growing tactic among fintechs expanding across borders.

CAK noted that since Moniepoint has no current operations in Kenya, the deal is unlikely to affect market competition, which is heavily concentrated among five dominant players. The authority also emphasized that the transaction poses no public interest concerns, as it will not lead to job losses, with existing staff retained under current employment terms.

This move follows Moniepoint’s failed attempt earlier this year to acquire local payments company KopoKopo, a deal that collapsed despite regulatory approvals. While reasons remain undisclosed, the Sumac acquisition signals Moniepoint’s continued interest in tapping into Kenya’s $67.3 billion mobile payments ecosystem, one of the most active in Africa.

Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint operates primarily through subsidiaries in Nigeria. Its entry into Kenya aligns with a wider trend in the region, where banks and well-capitalized fintechs are increasingly buying into established institutions. Similar deals include KCB Group’s KSh 2 billion acquisition of Riverbank Solutions and Nigeria’s Access Bank’s takeover of National Bank of Kenya.