Nigeria-based fintech Moniepoint has acquired 78 percent stake in Sumac Microfinance Bank Ltd, marking its first major acquisition in Africa and its formal entry into the East African market.

The deal, which has received approval from the Central Bank and the Competition Authority of Kenya will see Moniepoint deploy its suite of banking, payments, credit, and business management tools targeting Kenya's roughly 7.4 million MSMEs.

"This acquisition ensures Kenyan entrepreneurs gain access to integrated tools that drive scale, and we look forward to working with the Sumac team to build a bigger, more impactful organization together," said Tosin Eniolorunda, co-founder and CEO, Moniepoint.

Kenya's MSMEs remain largely underserved in access to seamless financial tools including business payments, banking, and credit. The firm said its entry in East Africa is designed to address this underserved segment, equipping Kenyan entrepreneurs with the full suite of tools they need to succeed and grow.

Moniepoint is banking on its ability to offer MSMEs through its "single, cohesive platform."

“This partnership combines Sumac’s local expertise and customer trust with Moniepoint’s cutting-edge technology. We are poised to deliver transformative value and strengthen financial inclusion across Kenya, ensuring Sumac becomes the ideal partner for every business in the country," noted John Kibatha Njoroge, Founder and Chairman of Sumac Microfinance Bank.

The transaction is expected to see Sumac customers experience seamless transition to a digital-first platform underpinned by Moniepoint’s world-class engineering, while benefitting from a strengthened capital base and expanded lending capacity.

Sumac acquisition builds on Moniepoint's recent momentum, following its purchase of Orda Africa, a cloud-based restaurant management platform, and Bancom Europe, an FCA-licensed e-money institution, both reinforcing its commitment to Africa's financial infrastructure and a borderless strategy serving the global African diaspora.

Founded in 2015, Moniepoint seeks to revolutionize financial inclusion in Africa by among others providing essential services to businesses operating in both formal and informal economies. Company disclosures show the firm processes over $250 billion in digital payments transaction value annually.

Established in 2002 as an informal investment group before transitioning into a licensed microfinance bank in 2012, Sumac has built a niche by serving entrepreneurs and small businesses that are often overlooked by the mainstream banking system. 

As of the latest figures, the microlender holds assets worth KES1.05 billion and is managing just over 43,800 active loan accounts, making it a key player in Kenya’s microfinance segment where it enjoys an estimated 2.8 percent market share.

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