CAK Approves Acquisition of Kopo Kopo Incorporated by America’s Moniepoint

The full acquisition of Kopo Kopo Incorporated by American company Moniepoint, a digital financial firm that lends to small and medium-sized businesses, has been approved by the Competition Authority of Kenya (CAK).

The transaction was approved by the competition authority because it was unlikely to have a negative effect on competition in the market for digital credits.

“Given that Moniepoint does not have current operations in Kenya, the firm had no turnover or assets in the preceding year to lodge the merger application (2022). Kopo Kopo Inc. is a company incorporated in the United States of America,” CAK said in a statement.

“It has operations in Kenya under the brand Kopo Kopo Inc. (Kenya Branch),” it added.

“The transaction, therefore, qualified as a merger pursuant to sections 2 and 41 of the Competition Act, No. 12 of 2010. The Act stipulates that a merger, or takeover, may occur when an undertaking directly or indirectly acquires control over another business within Kenya,“ it stated.

Since 2021, Kopo Kopo has operated in the country as a digital payment solution that provides users with access to credit and other business tools through integrated software.