Umba, a pan-African digital bank, has secured a $5 million debt facility from Star Strong Capital to fuel its expansion across the continent, with a particular focus on Kenya. This investment marks a significant step for Umba, enabling it to broaden its customer base and enhance its lending capacity in one of Africa’s most dynamic fintech ecosystems.

Founded by Tiernan Kennedy and Barry O’Mahony, Umba aims to address the vast, underserved market in Africa by providing accessible banking services. The digital bank offers a range of services, including no-fee current accounts, low-cost payments, bill payment options, and loans. By leveraging proprietary customer data, Umba provides tailored credit products that can be accessed and repaid via mobile phones.

Initially launched in Nigeria, Umba relocated its headquarters to Kenya in 2023. Since its official launch in Kenya in April 2023, following the acquisition of Daraja Microfinance Bank, Umba has experienced substantial growth. In 2024, the company reported a 19% month-over-month revenue increase and a sixfold revenue increase last year. This growth has been primarily driven by the strong performance of its vehicle and SME financing products.

Tiernan Kennedy, co-founder and CEO of Umba, expressed confidence in the company's trajectory, stating, "With the confidence of key financial backers like Star Strong Capital, Umba is poised to leverage this funding to broaden its market influence. 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." Kennedy also noted that Umba Kenya is on track to report a profit for 2025.

Umba's strategy involves solving a broad spectrum of financial problems and continuously adding new products to its offerings. This comprehensive approach positions Umba as a viable digital alternative to traditional banks. Unlike many other African economies, Kenya's financial ecosystem is dominated by M-PESA, which processes nearly 60% of the country’s GDP. Additionally, the Central Bank of Kenya has a moratorium on new banking licenses, creating a barrier to entry for new players. However, Umba holds one of the country’s 14 microfinance bank licenses through its acquisition of Daraja Microfinance Bank, giving it a competitive advantage.

In addition to its mobile app, Umba has partnered with over 5,000 agents in Kenya to facilitate customer acquisition. These agents also use Umba's services, creating a beneficial cycle that further drives customer growth. For instance, agents at car dealerships receive commission payments into their Umba accounts, effectively turning them into Umba customers.

Umba has found success by focusing on productive lending, primarily toward vehicle and SME financing. To mitigate risks associated with Africa's credit gap, Umba co-owns the vehicles it finances, allowing the company to reclaim them in case of default. The demand for Umba’s lending services currently exceeds its capacity, underscoring the importance of the new debt facility.

Spring Hollis, Founder and CEO of Star Strong Capital, emphasized the strategic importance of their investment, stating, “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.”

While Umba initially planned to expand into other African countries, it has decided to concentrate on strengthening its market positions in Kenya and Nigeria.