Nairobi — Moniepoint Inc., a private limited liability company incorporated in the United States of America, has been approved to acquire Sumac Microfinance Bank Limited for an undisclosed amount.
As part of the deal, the U.S. firm will acquire a 78 percent shareholding of the microfinance company.
Sumac Microfinance Bank Limited, which began its operation in 2002, is involved in monetary intermediation, financial leasing, and insurance agency, among other activities.
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On the other hand, the acquiring company operates two subsidiaries incorporated in Nigeria. They are TeamApt Limited and Moniepoint Microfinance Bank Limited.
"The Competition Authority of Kenya has approved the proposed acquisition of 78% shareholding of Sumac Microfinance Bank Limited by Moniepoint Inc. unconditionally, noting that the transaction is unlikely to negatively impact competition in the market for provision of microfinance banking services in Kenya, nor elicit negative public interest concerns," the Competition Authority of Kenya (CAK) said in a statement.
In Kenya, microfinance institutions are classified into community-based microfinance banks, which operate in specific regions and have lower capital requirements and nationwide microfinance financial institutions that offer services countrywide with higher capital requirements.
As of 31 December 2023, there were five large microfinance banks with a combined market share of 83.8 percent, six medium microfinance banks with 15 percent, and three small microfinance banks with 1.2 percent.
