Kenyan Digital Lender Secures Major Funding for Digital Lending Expansion

Kenya’s fintech ecosystem continues to attract investor confidence as digital lender MyCredit secures Sh387 million in fresh funding to drive digital lending expansion across the country. The capital injection — part of a broader trend in Kenya’s digital credit market — is intended to bolster the firm’s lending capacity and help it reach more underserved customers, SMEs, and sectors with fast-growing credit demand in an environment where traditional banks have tightened lending standards.

Funding aims to accelerate digital lending expansion and financial inclusion

MyCredit is a licensed Digital Credit Provider (DCP) under the Central Bank of Kenya’s framework, which, as of December 2025, included 195 regulated entities seeking to tap the booming digital credit market. The Sh387 million funding round positions the company to scale its operations and respond to the growing need for accessible, flexible credit solutions.

The move underscores how digital lenders are stepping in as traditional institutions face demand constraints. With banks and Saccos tightening lending criteria amid economic headwinds, Kenyan consumers and micro-enterprises increasingly turn to digital platforms that promise quick approvals, minimal paperwork, and tailored loan products. These dynamics have helped the digital credit sector play an increasingly pivotal role in financial inclusion and credit access for underserved segments.

MyCredit’s financing will support a mix of short-term and medium-term credit offerings designed to cater to various market needs. This includes working capital facilities and asset financing products with repayment terms aligned to business and consumption cycles — a crucial factor for small enterprises and salaried individuals navigating cash flow challenges.

Digital lending has emerged as one of the fastest-growing segments in Kenya’s financial services sector, driven by rising smartphone adoption, broad mobile money usage, and increased data connectivity. For many Kenyans, especially in the informal economy, access to credit through non-traditional channels has helped bridge financing gaps left by conventional lenders.

Implications for borrowers and the financial services landscape

For consumers and small businesses, the increased capital underscores the growing role of digital lenders in financial inclusion. By offering relatively fast, low-barrier access to capital, digital lenders can support business expansion, education costs, asset acquisition, and emergency needs. Unlike traditional bank loans, which often require extensive documentation and collateral, digital lending platforms can provide quicker access based on alternative credit scoring methods and transactional data.

However, stakeholders also caution that rapid credit growth must be balanced with responsible lending practices. Higher interest rates, short repayment windows, and aggressive collections could pose risks if not properly managed, particularly for low-income borrowers. Responsible digital lending advocates emphasize strong risk assessment, transparent terms, and financial literacy support to ensure that credit expansion translates into sustainable economic benefit.

For MyCredit, the infusion of capital arrives at a time when competition among digital lenders is intensifying, and consumer expectations for seamless, secure, and affordable credit products are rising. The success of this funding round could prompt further investor interest in Kenya’s digital credit sector and encourage similar fintech firms to pursue growth capital.

As Kenya’s fintech landscape evolves, the ability of digital lenders to combine scalability with consumer protection will be crucial. Investments like this one signal not only confidence in digital lending as a business model but also recognition of its potential to expand financial access in a market where traditional credit remains limited.

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