Latest news with #CompetitionAuthorityofKenya
Business Insider
3 days ago
- Business
- Business Insider
From disruptors to dominators: Moniepoint moves to buy Kenyan bank
After gaining regulatory clearance to purchase a controlling position in Sumac Microfinance Bank, Nigerian fintech behemoth Moniepoint Inc. is poised to make a significant entry into the Kenyan financial services industry. Moniepoint Inc., a Nigerian fintech company, has gained regulatory clearance to acquire a 78% stake in Kenya's Sumac Microfinance Bank. The acquisition has been approved by the Competition Authority of Kenya, ensuring no negative impact on public interest or employee terms. This move signals Moniepoint's strategic entry into Kenya's financial services sector following a previous unsuccessful acquisition attempt. While Moniepoint's acquisition of 78% of the Nairobi-based financial institution has been approved by the Competition Authority of Kenya (CAK), the deal is yet to be finalized. In a statement shared with Techpoint Africa, Moniepoint noted that 'regulatory approval has been received from the Competition Authority of Kenya for a potential transaction with Sumac Microfinance Bank. Further updates will be given as appropriate.' 'According to the parties' submissions, the transaction will not result in negative public interest issues. Specifically, there will be no employment loss and all current employees will be retained under current terms,' the CAK statement said. Thisnew development comes five months after Moniepoint's bid to acquire KopoKopo, a local payments company, failed despite obtaining regulatory approval as well. Although the reasons for the deal's fall off is still unknown, it was a surprising setback for one of Africa's most ambitious fintech companies, which is well-known for its rapid growth throughout the continent. However, Moniepoint seems to have adjusted its strategy now. The company is choosing a strategic entry point that is consistent with its primary goal of enabling small companies through digital financial services by focusing on Sumac Microfinance Bank, a very minor player in Kenya's microfinance market. Sumac, which was established in 2001 as a savings and credit cooperative association and changed its name to a deposit-taking organization in 2012, now accounts for 4.3% of Kenya's microfinance banking industry. It has about 16,000 deposit accounts and KES 3.013 billion ($23 million) in assets as of December 2023. Moniepoint's projected expansion into Kenya reflects a larger trend of acquisitions in Africa's banking industry. Established banks and fintech companies are increasingly purchasing smaller institutions to speed up their entry into new markets or broaden their product offerings.
Business Insider
12-05-2025
- Business
- Business Insider
Africa's richest man Aliko Dangote backs the aquisition of Kenya's oldest tour company
Nigerian business mogul and Africa's richest man, Aliko Dangote, alongside fellow billionaire David Rubenstein, have made a push into the Kenyan tourism industry with the acquisition of Pollman's Tours and Safaris. Aliko Dangote and Dave Rubenstein have invested in Kenya's tourism sector by acquiring Pollman's Tours and Safaris. The acquisition was executed through Alterra Capital, aiming to expand in Kenya's significant tourism industry. The merger will not impact market competition or jobs, as confirmed by the Competition Authority of Kenya. Alterra Capital, a private equity firm backed by American billionaire Dave Rubenstein and Aliko Dangote, made an investment in ARP Africa Travel Group, the company that runs Pollman's, in February. The firm, in an attempt to tap into one of Kenya's largest sectors, tourism, recently decided to purchase Kenya's oldest tour company, Pollman's Tours and Safaris. 'With regard to the proposed transaction, post-merger, the market share of the merged entity will not change as the target and the acquirer are not in similar business and therefore the structure and concentration of the markets for tour operators in Kenya will not be affected,' the regulator said in a statement. As per to the Competition Authority of Kenya (CAK), the composition and concentration of Kenya's decentralized tour operator industry, which is home to more than 300 companies including Bonfire Adventures and Bountiful Safaris, would not alter. In addition, the regulator came to the view that the acquisition does not threaten jobs or the competitiveness of small businesses, two major public interest issues under Kenyan merger rules. The parties said that the transaction will not result in any job losses, as reported by the Kenyan Wall Street. Dangote operations in other African countries Aliko Dangote is no stranger to operating in foriegn markets. Very recently, in a similar move for regional integration, Aliko Dangote expanded his agro-industrial conglomerate into Ghana with the launch of a massive sugar refinery project in Kwame-Danso, Bono East Region. The initiative, financed by Dangote Sugar Refinery Plc, is a daring bid to enter Ghana's $162 million yearly sugar import market while also helping the government's "One District, One Factory" industrialization strategy. The cutting-edge facility will be capable of processing 12,000 tons of sugarcane per day and will be supported by a 25,000-hectare irrigated plantation. In addition to refined sugar, the facility will create high-value byproducts, including molasses and ethanol, opening up potential in the agro-processing and biofuel industries. Since the launch of his oil refinery, the Nigerian businessman has exported petroleum products to Saudi Arabia, North America, and very recently, Turkey.
