Kenya’s Umba, a leading pan-African digital bank, has secured a US$5 million debt facility from Star Strong Capital to expand its operations across the continent.
Umba is a digital bank built for Africa, aiming to open up banking services for Africa’s vast, underserved market. The startup aims to make it easier for consumers and SMEs to interact with banks and mobile money networks, providing a transparent, low-fee service that allows users to take control of their financial lives.
Users get a no-fee current account, low-cost payments, billpay and loans. Umba also uses the proprietary data generated by customers to offer credit products and generate revenue where customers can receive and repay credit products through their mobile phones.
Launched in Nigeria, the company relocated to Kenya in 2023, and has now secured US$5 million in debt capital to expand its customer base and increase its lending capacity, a key step toward driving profitability and growth in one of Africa’s most dynamic fintech ecosystems.
With 19 per cent month-over-month revenue growth in 2024, Umba has rapidly scaled its operations, achieving a sixfold increase in revenue last year. Strong performance in vehicle and SME financing has fueled this growth, with new product offerings further enhancing customer satisfaction. Umba Kenya is on track to report a profit for 2025.
“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.”
Spring Hollis, founder and CEO of Star Strong Capital, said the partnership with Umba represented more than just a financial transaction.
“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.
