Moniepoint is the latest Nigerian fintech firm to make a foray into East Africa, joining Flutterwave, Paystack, and Chipper Cash, which have found success in the home of Africa’s most successful fintech firm, M-Pesa.

Seth Onyango, bird story agency

More Nigerian fintech firms are driving expansion beyond domestic borders into East Africa, drawn by the region’s strong venture capital activity and its innovation-friendly regulatory space.

It comes as the region continues to attract significant venture capital investment, while Nigeria, once Africa’s fintech frontrunner, experiences a slowdown.

“Nigerian fintechs see East Africa as the logical next step for expansion,” said Martin Macharia, a tech and fintech analyst based in Nairobi.

“The mobile money ecosystem here is mature, with high adoption rates and established consumer trust. Rather than building from scratch, they’re integrating into a system primed for scale.”

Kenya alone secured $638 million in VC funding in 2024, accounting for 88% of East Africa’s total inflows, as investors increasingly back fintech firms in Nairobi, Kigali, and Kampala.

Tellingly, as of October last year, Egypt and Kenya had soaked up over half of Africa’s venture capital funding, as the continent faced a sharp annual drop in investment inflows.

Now, the Lagos-based Moniepoint is the latest to enter the East African market, joining peers Flutterwave, Paystack, and Chipper Cash in a broader expansion strategy that is reshaping Africa’s fintech ecosystem.

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Last year, Nigerian fintech Rise acquired Kenya’s Hisa to enter the East African market, providing investors access to global and local assets like stocks and bonds. The acquisition leverages Kenya’s robust digital payment infrastructure and expanding retail investment sector to fuel Rise’s growth.

As competition intensifies in Nigeria’s fintech sector, financial services firms are looking beyond their home market to tap into new opportunities across Kenya, Rwanda, Uganda, and Tanzania.

In 2018 Flutterwave, became one of the early entrants eastwards when it launched its payments solution, Barter in Kenya – and later in 2020 in Rwanda.

In Kenya, however, the West African fintech giant faced a series of legal challenges after authorities accused it of abetting money laundering in 2020 and froze its accounts.

But High Court Judge Nixon Sifuna gave it respite, throwing out the case and criticising Kenya’s Assets Recovery Agency (ARA) for initiating the suit without completing investigations, deeming the action “inappropriate, negligent, reckless, and absurd.”

Meanwhile, Paystack has been expanding its presence in East Africa since acquiring a Payment Service Provider license from the Central Bank of Kenya (CBK), enabling it to formally launch operations in the region.

In October 2020, the Nigerian fintech acquired by Stripe and has steadily integrated into East Africa’s financial ecosystem, working with local payment processors and businesses to facilitate digital transactions.

Chipper Cash, founded in the San Francisco by a Ghanaian and Ugandan duo, has also bolstered its presence in the region, focusing on cross-border payments and remittances.

Nigeria became its operational birthplace, serving as the launchpad for its rapid growth across Africa. The company now operates in Kenya, Uganda, Rwanda, and Tanzania, leveraging mobile money integrations to facilitate seamless transactions.

In March, it partnered with Ripple to enhance its payment infrastructure, using blockchain technology to enable faster and more cost-effective remittances across Africa.

East Africa’s appeal lies in its well-established mobile money infrastructure, led by Kenya’s M-Pesa, widely regarded as Africa’s most successful fintech platform.

Mobile transactions dominate the financial landscape, creating an environment where digital payment providers can scale quickly.

Nigerian fintech firm’s aggressive push into East Africa comes as cross-border trade and remittance flows within Africa are expanding under the African Continental Free Trade Area (AfCFTA), fuelling demand for efficient payment solutions.

Those launching eastwards are positioning themselves as complementary players, offering services beyond traditional mobile wallets, including digital lending, payment processing, and SME financing.

According to Macharia, regulatory conditions have also played a role in attracting Nigerian fintechs to East Africa.

Countries like Kenya and Rwanda have introduced policies that encourage digital financial services, making it easier for foreign fintech firms to establish operations.

In contrast, Nigeria’s regulatory environment has posed challenges, with shifting policies and restrictions on cryptocurrency transactions unlike in East Africa which enjoys a lax legal regime.

Investment trends support the expansion with venture capital funding into East African fintechs surging, as international investors increasingly back startups in Nairobi and Kigali.

The influx of financing creates a natural bridge for Nigerian firms seeking cross-border partnerships. Paystack’s recent collaborations with Kenyan payment processors point to an evolving landscape where Nigerian fintechs integrate into established networks rather than building entirely new systems.

But competition remains a challenge. With well-rooted mobile money providers dominating the market, Nigerian fintechs entering East Africa must differentiate their offerings.

Some firms are focusing on business solutions, targeting merchants and small businesses rather than individual consumers. Others, like Moniepoint, are leveraging banking infrastructure to support enterprise payments, aiming to carve a niche in digital financial services beyond mobile money.

Despite the momentum, risks remain. Compliance hurdles, local competition, and consumer adoption rates will influence how successfully Nigerian fintechs navigate East Africa’s fintech landscape.

While mobile money is dominant, alternative digital payment systems still require strong customer trust and usability. Cybersecurity and fraud prevention efforts are also top priorities as fintech operations scale.

As new partnerships emerge and competition intensifies, companies will need to tailor their models to local market needs while leveraging the region’s fintech-friendly policies.