The Competition Authority has approved the acquisition of 100 per cent shares in Kopo Kopo incorporated by Moniepoint Incorporated.
CAK say the approval has been granted owing to the unlikely nature of the transaction to impact competition in the digital credit market negatively.
Additionally, CAK observes that the transaction will not elicit negative public interest concerns.
Further, it says that Moniepoint is a company incorporated in the United States of America, therefore, does not control any undertaking in Kenya but has subsidiaries in Nigeria (Teamapt Limited and Moniepoint Microfinance Bank) and the United Kingdom. As such, the company does not generate any turnover.
“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. It has operations in Kenya under the brand Kopo Kopo Inc. (Kenya Branch),” CAK said in a statement.
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“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, “added the statement. Kopo Kopo has been in the country since 2021 acting as a digital payment solution giving access to credit and other business tools through integrated software."
