Kenya’s digital‑lending platform MyCredit has secured Sh1.4 billion (≈ US$10.4 million) in new funding, a deal that underscores investor appetite for East Africa’s fast‑growing fintech sector even as global venture flows cool.
The capital raise—structured as a mix of equity and a senior secured debt facility—was led by South Africa’s Norsad Capital, with participation from returning backers Accion Venture Lab and Nairobi‑based Victoria Commercial Bank.
MyCredit said the funds will be used to deepen its machine‑learning risk engine, expand salary‑advance and SME‑working‑capital lines, and comply with Kenya’s enhanced digital‑lender consumer‑protection rules.
Chief executive Joyce Wanjiku told reporters the company plans to double its active borrower base to 600,000 by year‑end while capping its non‑performing‑loan ratio below 6 percent. “We’ve proven that you can scale responsibly in this segment,” she said, pointing to a 35 percent year‑on‑year rise in disbursed loans and a 28 percent jump in fee and interest income in 2024.
MyCredit, licensed by the Central Bank of Kenya under the Digital Credit Providers regulations, uses alternative data—mobile‑money flows, utility payments, and psychometric testing—to score thin‑file customers.
The platform disbursed Sh11 billion last year, with an average ticket size of Sh9,200 and tenor of 28 days for consumer loans and up to six months for micro‑enterprise lines.
Analysts at Renaissance Capital said the raise is one of the largest disclosed fintech tickets in Kenya since 2023 and signals renewed confidence after a regulatory clamp‑down that forced dozens of unlicensed apps off Google Play.
“Investors are now backing lenders that can show both compliance and a clear path to profitability,” the brokerage noted in a client brief.
MyCredit last tapped the market in late 2022 with a Sh600 million pre‑Series A round. The latest infusion brings total capital raised to just over Sh2.6 billion.
The company says it will open satellite offices in Nakuru, Eldoret, and Kisumu to support in‑person onboarding for small merchants and is piloting an overdraft product tied to Lipa‑na‑Mpesa tills.
Industry peers such as Tala, Branch, and Zenka have also been shoring up balance sheets to meet higher capital requirements ahead of an expected rollout of credit‑information‑sharing reforms later this year.
