The Competitors Authority of Kenya (CAK) has given its approval for Moniepoint Inc.’s proposed acquisition of a 78% stake in Sumac Microfinance {Bank} Restricted, stating that the transaction doesn’t pose any risk to market competitors or public curiosity.
In line with a press release launched by the CAK, the acquisition, which meets the edge for obligatory regulatory evaluation, was authorised unconditionally, following an in depth evaluation of its affect on Kenya’s microfinance sector.
Moniepoint Inc., a U.S.-registered Nigerian fintech firm, operates primarily by its Nigerian subsidiary, Moniepoint Microfinance Bank.
The acquisition of Sumac marks Moniepoint’s first foray into the Kenyan {financial} companies panorama.
Sumac Microfinance, based in 2002, is a licensed deposit-taking microfinance establishment in Kenya providing a variety of companies together with financial intermediation, lending, deposit-taking, leasing, insurance coverage company, cash switch, and foreign currency trading.
In line with CAK, the deal was authorised as a result of the acquisition is not going to alter the aggressive construction of the microfinance banking market in Kenya.
The Authority stated it additionally evaluated the potential affect of the transaction on public curiosity elements reminiscent of employment, SME competitiveness, and native business resilience, and concluded that there could be no job losses as all present Sumac workers could be retained beneath current phrases.
As well as, no adversarial results on small and medium enterprises (SMEs) or the broader {financial} companies ecosystem have been recognized.
“Particularly, there might be no employment loss, and all the present workers might be retained beneath the present phrases.
“Premised on the above, the Authority authorised the proposed acquisition of 78% shareholding of Sumac Microfinance {Bank} Restricted by Moniepoint Inc. unconditionally,” the Authority acknowledged.
With this approval, Moniepoint is about to affix the clique of Nigerian {financial} companies suppliers which have expanded to the East African nation.
