Kenyan-based digital bank Umba has secured a US$5 million debt facility from Star Strong Capital to support its expansion efforts across Africa.

Umba, which initially launched in Nigeria and moved its operations to Kenya in 2023, provides digital banking services targeted at underserved markets.

The platform offers users access to current accounts with no fees, low-cost payments, bill payments, and loans.

It also uses proprietary customer data to offer credit products, which are accessible and repayable through mobile phones.

The new funding will help the company grow its customer base and increase its lending capacity.

Umba reported a 19 per cent month-over-month revenue growth in 2024 and a sixfold increase in revenue over the past year.

The company attributes much of this growth to strong performance in vehicle and SME financing.

“Our Kenyan launch has exceeded expectations, with excellent lending performance,”

said Tiernan Kennedy, co-founder and CEO of Umba.

“As the only pure-play digital bank in the market, we’re delivering a better way to bank for Kenyans through speed, accessibility, and tailored financial solutions.”

Star Strong Capital founder and CEO, Spring Hollis said the partnership goes beyond financial backing.

“It is an investment in the future of digital banking and financial inclusion in Africa. We believe Umba’s innovative approach and customer-centric model position them to become a key player in Kenya’s fintech revolution,”

she said.

Featured image credit: edited from freepik