Nigeria’s Moniepoint enters Kenya through Sumac acquisition, targeting SME lending boom

Nigeria’s Moniepoint has entered Kenya’s financial market after acquiring a 78 percent stake in Sumac Microfinance Bank, a move that positions the fast-growing fintech to expand lending to small and medium-sized enterprises (SMEs) in East Africa’s largest economy.

The deal, finalised on Thursday during a reception in Nairobi’s Westlands area, gives Moniepoint access to a deposit-taking banking licence, a critical requirement for scaling its credit-focused business model.

The acquisition ends a multi-year effort by the Nigerian firm to establish a foothold in Kenya after an earlier attempt to enter the market through payments company Kopo Kopo stalled.

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By buying a majority stake in Sumac, a 20-year-old microfinance institution, Moniepoint is able to bypass the Central Bank of Kenya’s long-standing freeze on issuing new banking licences.

The move allows the company to compete more directly with major financial players in the country, including Safaricom and Equity Group, which dominate Kenya’s digital finance ecosystem.

The expansion comes as demand for credit among small businesses continues to grow across Kenya and the wider East African region. SMEs make up the backbone of the economy but often face limited access to financing from traditional banks.

Moniepoint is betting that its technology-driven lending model, which has gained traction in Nigeria’s fragmented retail sector, can help fill that gap.

The transaction also reflects a broader shift taking place in Africa’s fintech industry. Many companies that initially focused on payments are now seeking regulated banking structures to unlock lending and scale across borders.

The move highlights how fintech firms are increasingly acquiring licensed institutions rather than waiting for new approvals in tightly regulated markets.

Moniepoint processed more than $294 billion in annualised transaction value in 2025, making it one of Africa’s largest business banking platforms. The company is now aiming to replicate its growth strategy in Kenya by combining banking services with digital tools that help merchants manage their operations.

The Kenya expansion follows closely on the heels of Moniepoint’s acquisition of Orda, a cloud-based restaurant management software provider.

The company plans to integrate Orda’s technology with Sumac’s banking infrastructure to deliver what it describes as a ‘business-in-a-box’ platform, offering services such as inventory management, payroll and working capital financing.

Industry watchers say this approach could appeal to Kenya’s fast-growing digital commerce sector, especially as regulators tighten oversight of digital lenders and push fintech firms toward more structured and transparent models.

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Although Sumac is considered a smaller lender, its branch network and regulatory standing provide Moniepoint with a ready platform to scale. The deal signals a new phase in African fintech expansion, where regional growth is increasingly driven by credit, licensing and ecosystem control rather than payments alone.