Umba, a digital banking firm based in Nigeria, has acquired a 66.6% stake in the Kenyan microfinance bank Daraja as part of its strategic expansion across the continent.
Founded by Irish entrepreneurs Kiernan Kennedy and Barry O’Mahony and headquartered in San Francisco, Umba provides free accounts, interbank transfers, P2P transfers, bill payments, and loans. Initially launching its operations in Nigeria, Umba raised $15 million in April from investors, including Monzo co-founder Tom Blomfield, to facilitate its expansion into Ghana, Kenya, and Egypt.
With an established non-deposit taking credit business in Kenya, Umba’s acquisition of a controlling interest in Daraja, which focuses on lending to micro and small enterprises, marks a significant step forward. The Central Bank of Kenya has expressed its support for the deal, noting that it will enhance Daraja’s business model and promote its digitization.