NAIROBI, Kenya, Feb 24 – Tanzania’s money transfer company Nala will invest Sh633.3 million ($5 million) in Kenya, allowing the country to create more fintech jobs.
The investment comes after the startup picked Kenya for its worldwide office.
Over three million Kenyans live abroad, largely in the US and UK.
The latest figures from the Central Bank of Kenya show that diaspora remittances rose by 8.34 percent to Sh506.6 billion in 2022.
“At NALA we are deliberate and consistent about our investment into Africa and Kenya. Among the numerous reasons we chose Kenya as our headquarters are the favorable regulatory environment, top class talent pool and robust levels of startup investment,” NALA Founder and CEO Benjamin Fernandes said.
“We want to increase our commitment to Africa and Kenya by doing rather than trying, and this is a sign for what’s to come for NALA in Kenya.”
It also announced its cross-border payments platform for businesses, which will ease capital inflow friction in Kenya.
NALA for Business will integrate with major banks to connect pay-ins internationally.
The product is currently available in the United Kingdom, the European Union, and Tanzania, but the company hopes to launch in Kenya once it obtains a license.
Benjamin was joined by the Permanent Secretary for the State Department for Diaspora Affairs, Roseline K. Njogu.
“Kenyans have been on the leading edge of financial digitization, and the Kenyan Government wants to continue to support the innovation enabling easier and more transparent payments to Kenya,” Roseline said.
“NALA’s recent innovation enabling payments to Buy Goods and Till numbers directly from abroad will support Kenyans in having greater control and reducing leakage on the money they invest back home.”
