Moniepoint, a prominent Nigerian fintech company, has recently received approval to acquire a majority stake in Kenya’s Sumac Microfinance Bank. This acquisition marks a significant milestone in Moniepoint’s growth strategy as it looks to expand its presence in the East African market.
The Competition Authority of Kenya (CAK) has given the green light for the deal, stating that it does not pose any threats to competition or public welfare. The review conducted by the CAK found that Sumac Microfinance Bank holds a modest 4.3% share of the microfinance market in Kenya, while Moniepoint is a newcomer to the country. This lack of market dominance or excessive concentration alleviates any concerns about disrupting the financial sector in Kenya.
Furthermore, the CAK has confirmed that the acquisition will not lead to any job losses at Sumac Microfinance Bank. All existing staff members will retain their positions under the same terms, providing stability and reassurance to employees and observers alike.
This move signifies Moniepoint’s first foray into the Kenyan financial services market, joining a growing list of Nigerian companies making significant investments in East Africa. For instance, Access Bank recently acquired the National Bank of Kenya, and Flutterwave offers services like M-PESA integrations and international payments in the country. This trend reflects a broader effort by Nigerian companies to establish a stronger presence throughout the African continent.
Established in 2002, Sumac Microfinance Bank offers a range of services, including lending and forex trading. Moniepoint believes that this acquisition will provide a solid foundation to support local businesses in Kenya and could potentially lead to further opportunities in the region.
Overall, the approval of Moniepoint’s acquisition of Sumac Microfinance Bank represents a positive development for both companies and the broader financial landscape in Kenya. With the backing of a reputable Nigerian fintech company, Sumac is well-positioned to continue serving its customers and contributing to the growth of the microfinance sector in the country.
(Source: techpoint.africa)
