How Moniepoint received approval to acquire a Kenyan Bank

• Nigeria’s fintech, Moniepoint, has been approved by the Competition Authority of Kenya to get a 78% involvement successful Sumac MfB
• The woody volition let Moniepoint to participate Kenya's tightly regulated fiscal services market
• Experts accidental the woody shows however fintech is making inroads into the tightly regulated Kenyan marketplace by acquiring licensed section players

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Nigeria’s fintech unicorn, Moniepoint, has been cleared by the Competition Authority of Kenya (CAK) to get a 78% involvement successful Kenya’s Sumac Microfinance Bank.

If completed, the woody volition let the Nigerian fintech to participate into Kenya’s tightly regulated banking sector.

Moniepoint receives support to get Kenyan Bank Credit: Moniepoint.
Source: Facebook

Kenya promises nary occupation losses successful the projected deal

The determination comes aft Moniepoint’s program to bargain outgo institution Kopokopo collapsed.

The Sumac woody is yet to beryllium approved by the Central Bank of Kenya and would let Moniepoint entree to Kenya’s booming mobile outgo market, estimated astatine $67.3 billion.

Experts accidental the woody shows however fintechs are making inroads into the tightly regulated Kenyan marketplace by acquiring licensed section players.

TechCabal reported that CAK disclosed that the transaction volition not pb to occupation oregon employment losses and that each existent employees volition beryllium retained nether existing terms.

Sumac is simply a mid-sized MfB successful Kenya

It disclosed that based connected the above, it has approved the projected acquisition of 78% shareholding of Sumac Microfinance Bank by Moniepoint unconditionally.

Sumac has evolved into a licensed microfinance slope since 2002 and offers services specified arsenic SME loans, deposits, wealth transfers, and forex trading.

The slope is rated arsenic a medium-sized microfinance bank, with $8.1 cardinal successful assets and 43,800 progressive indebtedness accounts.

It holds a 2.8% stock of the microfinance marketplace successful the East African country.

Sumac opened the concern successful 2004 nether Sumac Credit, targeting concern owners disenfranchised by accepted banks.

After 10 years, Sumac secured a microfinance banking licence from Kenya’s cardinal bank.

Moniepoint becomes a unicorn

Moniepoint was founded successful 2015 by Tosin Eniolorunda and Felix Ike. It is registered successful the US and based successful Nigeria.

The fintech unicorn besides has a beingness successful the UK and without a basal successful Kenya.

Moniepoint became a unicorn past twelvemonth aft a series C funding circular led by Development Partners International (DPI) and including Google's Africa Investment Fund, which valued the institution astatine implicit $1 billion, a milestone for African startups. 

The institution plans to usage the funds to grow its services crossed Africa, offering a broad level for businesses of each sizes, including integer payments, banking, overseas exchange, credit, and concern absorption tools.

Moniepoint founders, Tosin Eniolorunda and Felix Ike, determination to get Kenyan Bank. Credit: Moniepoint
Source: Getty Images

According to reports, CAK approved Moniepoint’s bid to get Kopokopo, a section Kenyan fintech that provides recognition to SMEs.

However, the woody fell done after, with neither enactment explaining the reasons.

Access Bank completes afloat acquisition of NBK

Legit.ng earlier reported that National Bank of Kenya Limited (NBK) has been fully acquired by Access Bank Plc from KCB Group PLC (KCB Group).

The slope said successful a connection connected Friday that the improvement signifies the decision of a transaction that began successful March 2024 and that each regulatory approvals typically required for specified a transaction person been obtained.

As a result, Access Bank Plc present owns each of NBK, which was formerly controlled by the KCB Group. Until each merger procedures are completed, NBK and Access Bank Kenya volition proceed to run independently.

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Source: Legit.ng