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Lagos-based firm to acquire 78pc stake in Sumac Microfinance
Competition Authority of Kenya (CAK) Director General David Kibet Kemei makes his remarks during the release of the 2024 Banking Customer Satisfaction Report held at the Radisson Blu Hotel on February 12, 2025.
Lagos-based Moniepoint Inc is set to acquire a 78 percent shareholding in Sumac Microfinance Bank Limited, continuing a trend of acquisitions within the local micro-lending space.
The Competition Authority of Kenya (CAK) has disclosed the transaction that has also received unconditional approval from the watchdog.
Moniepoint Inc is a private limited liability company incorporated in the United States but with two operational subsidiaries in Nigeria- TeamApt Limited and Moniepoint Microfinance Bank Limited.
Sumac, established in 2002, initially operated as an investment group but has evolved into monetary intermediation, financial leasing, insurance agency and brokerage, deposit-taking and lending, money transfer services and forex trading.
The microlender began with 14 investors before opening to the public in 2004 as Sumac Credit Limited as an alternative to commercial bank loans for business people.
Sumac was licensed as a fully fledged microfinance bank by the Central Bank of Kenya (CBK) in 2014.
CAK has granted its approval of the transaction, noting that the acquisition does not raise any competition concerns, while the acquirer has committed to retaining all jobs in the target.
“As per the parties’ submissions, this transaction will not result in negative public interest issues. Specifically, there will be no employment loss, and all the current employees will be retained under current terms,” CAK said in a statement.
“Premised on the above, the authority approved the proposed acquisition of 78 percent shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc. unconditionally.
The transaction’s close is still dependent on additional approval by CBK.
Sumac MFB is currently classified as a medium microfinance bank based on its market share of 2.8 percent, as of December 2023 according to additional CBK data. The microfinance bank had an asset base of 1.05 billion and had 43,800 active loan accounts.
Kenya had 14 microfinance banks licensed at the end of 2023 and were classified into three peer groups based on market share, where the largest have shares above five percent while the lowest control the market up to one percent.
The largest microfinance banks in the country are Faulu, Kenya Women MFB, SMEP MFB, Rafiki MFB and Caritas MFB.
The expected acquisition of Sumac continued a trend where foreign investors have continued to snap up local microfinance banks.
US Christian based faith non-profit organisation Hope Advancement Inc. acquired a 51 percent stake in SMEP microfinance bank, while LOLC Mauritius took a 73.2 percent stake in Key Microfinance Bank (formerly Remu) in 2022.
In the same year, Branch International acquired Century Microfinance Bank, while London incorporated Wakanda Network Limited acquired an 85 percent stake in Choice MFB.
Uwezo Microfinance Bank was previously acquired by Salaam African Bank in May 2021.
