Kenya’s Umba raised $5 M debt funding to expand digital banking operations
A US $5 million debt facility has been obtained by Kenya’s Umba, a prominent pan-African digital bank, from Star Strong Capital in order to expand its operations throughout the continent.
With the goal of providing banking services to Africa’s sizable underserved market, Umba is a digital bank designed specifically for the continent. The startup wants to facilitate communication between banks and mobile money networks for consumers and small businesses by offering a low-cost, transparent service that empowers users to take charge of their financial lives.
Customers can pay their bills, get loans, and have a current account with no fees. In order to offer credit products and make money, Umba also uses the proprietary data that its customers generate. Customers can use their mobile phones to receive and repay credit products.
The company was founded in Nigeria, moved to Kenya in 2023, and has since raised US$5 million in debt capital to grow its clientele and lending capabilities—a crucial step in promoting profitability and expansion in one of Africa’s most vibrant fintech markets.
Umba has quickly expanded its business, achieving a sixfold increase in revenue last year and a 19% month-over-month revenue growth in 2024. This growth has been driven by strong performance in SME and vehicle financing, and new product offerings have further improved customer satisfaction. In 2025, Umba Kenya is expected to turn a profit.
“With the confidence of key financial backers like Star Strong Capital, Umba is poised to leverage this funding to broaden its market influence,” said Tiernan Kennedy, co-founder and CEO of Umba. “Our Kenyan launch has exceeded expectations, with excellent lending performance. 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.”
According to Star Strong Capital’s founder and CEO, Spring Hollis, the collaboration with Umba was more than just a business deal.
“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. This debt financing will support their continued growth and ensure they remain at the forefront of delivering accessible, affordable financial solutions to underserved markets,” he said.
