The Competition Authority of Kenya (CAK) has given its approval for Moniepoint Inc.’s proposed acquisition of a 78% stake in Sumac Microfinance Bank Limited, stating that the transaction does not pose any threat to market competition or public interest.

According to a statement released by the CAK, the acquisition, which meets the threshold for mandatory regulatory review, was approved unconditionally, following an extensive analysis of its impact on Kenya’s microfinance sector.

Moniepoint Inc., a U.S.-registered Nigerian fintech company, operates primarily through its Nigerian subsidiary, Moniepoint Microfinance Bank.

The acquisition of Sumac marks Moniepoint’s first foray into the Kenyan financial services landscape.

Sumac Microfinance, founded in 2002, is a licensed deposit-taking microfinance institution in Kenya offering a range of services including monetary intermediation, lending, deposit-taking, leasing, insurance agency, money transfer, and forex trading.

According to CAK, the deal was approved because the acquisition will not alter the competitive structure of the microfinance banking market in Kenya.

It also noted that Moniepoint has no current operations in Kenya, and therefore, its entry via acquisition will not lead to market concentration or dominance.