Nigerian fintech unicorn, Moniepoint Inc., has moved closer to establishing a formal presence in Kenya’s financial ecosystem after receiving approval from the Competition Authority of Kenya (CAK) to acquire a 78% stake in Sumac Microfinance Bank Limited.
The deal which awaits final approval from the Central Bank of Kenya (CBK), allows Moniepoint to enter Kenya’s $67.3 billion mobile payments market.
A Moniepoint spokesperson confirmed:
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“Regulatory approval has been received from the Competition Authority of Kenya for a potential transaction with Sumac Microfinance Bank. Further updates will be given as appropriate.”
If completed, the acquisition would provide Moniepoint with a regulatory shortcut into the Kenyan market, granting immediate access to an operational microfinance bank in one of Africa’s most vibrant and competitive financial landscapes.
Sumac Microfinance: A Rising Local Player in Kenya
Established in 2002 and granted a deposit-taking license in 2012, Sumac Microfinance Bank currently holds a 4.3% market share with over 43,000 active loan accounts.
The bank has consistently been awarded since 2018, which shows a remarkable trajectory of progress. Sumac was awarded the 2nd Fastest-Growing Microfinance Bank in Kenya, marking its first major recognition at the Think Business Banking Awards in 2018.
This highlighted its rapid expansion in terms of market outreach, clientele growth, and product development. The bank’s loan book grew from Ksh458 million to Ksh850 million, and deposits increased from Ksh135 million to Ksh500 million within three years, showcasing significant financial growth.
Fast forward to 2025, Sumac was recognized for its consistent performance, emerging as the 2nd runner-up in the “Overall Best Microfinance Banks in Kenya” category at the 2025 and 2024 Think Business Banking Awards.
Licensed by the CBK, Sumac serves SMEs across Kiambu, Nairobi, and Nakuru counties, offering funding, training, and a strong customer experience. The bank offers a broad range of products tailored to business needs, including the Inua Biashara Business Loan, which supports micro and small business owners in meeting working capital needs and improving cash flow.
This loan is accessible to businesses without formal registration, such as general shops, hardware stores, Jua Kali artisans, and agribusiness traders, making it inclusive and impactful.
Sumac’s mission is to provide financial solutions that transform businesses and livelihoods and impact lives,” and its vision is to be the premier financial solutions provider that has been central to its operations.
Despite being a medium-sized player in a market dominated by five microfinance banks that control over 80% of the sector, Sumac presents Moniepoint with an attractive entry point, to compete with other players.
Moniepoint Strategic Growth via Acquisition of Sumac
Moniepoint’s move to acquire a 78% stake in Sumac Microfinance Bank Limited, exemplifies a broader trend among fintechs aiming to sidestep the lengthy process of establishing new operations by acquiring already regulated institutions.
By acquiring a licensed microfinance bank with a 4.3% market share, $23 million in assets, and over 43,800 active loan accounts, Moniepoint gains immediate access to Kenya’s financial ecosystem. This avoids the time-consuming and costly process of securing a new banking license, enabling faster market penetration.
Also, Sumac’s existing customer base, which includes SMEs, and its service offerings such as loans, deposits, and money transfers, provide Moniepoint with a ready platform to deploy its digital banking and payment solutions. This infrastructure allows Moniepoint to serve Kenyan businesses efficiently, aligning with its core focus on SME and merchant financial services.
Notably, Moniepoint’s expertise in digital payments and banking, honed in Nigeria’s competitive fintech landscape, complements Sumac’s microfinance operations. Integrating Moniepoint’s tech stack could modernize Sumac’s offerings, improve efficiency, and expand its reach, particularly in underserved SME and retail segments.
The acquisition of Sumac follows Moniepoint’s unsuccessful bid to acquire Kenyan fintech KopoKopo in 2023, signaling a deliberate pivot to alternative targets to achieve its East African ambitions.
Headquartered in the U.S. but operating primarily from Nigeria, Moniepoint—through its subsidiaries, has built a strong reputation in the digital banking space. This move marks the beginning of the company’s East African expansion, starting with microfinance.
All eyes now turn to the CBK for the final regulatory decision that could pave the way for Moniepoint’s official entry into the Kenyan market, where mobile payments and financial inclusion are key drivers.