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Fintech in Africa 2026: Opportunities Beyond Mobile Money

6 min read

Where African fintech goes after mobile money: verified 2026 data on M-PESA and funding, the openings in credit and merchant tools, and the licences you need.

Mobile money solved person-to-person transfers in Africa. The open opportunities in 2026 sit in the financial jobs it handles less well: credit for small businesses, tools for merchants, savings and investment, cross-border payments and insurance. In Kenya, most of these need a licence from the Central Bank or another regulator, so choose your regulatory path before you build.

I co-founded Hackhouse, a builders' hub in Nairobi. This guide covers how large mobile money has become, where fintech funding is going, the openings beyond the wallet and the licences you will need. I checked every figure on 5 November 2026.

How big is mobile money in Africa today?

GSMA's 2026 industry report found that US$1.4 trillion flowed through mobile money in sub-Saharan Africa in 2025, about two thirds of the global total (Connecting Africa, March 2026).

In Kenya, Safaricom reported that M-PESA handled 46.4 billion transactions worth KES 41.68 trillion in the year to March 2026, and M-PESA revenue rose 13.4% to KES 182.7 billion. Payments drove nearly 91% of that revenue growth (Tech-ish, May 2026). The rails are in place, and they already carry products far beyond transfers.

Where is fintech funding going in Africa?

Fintech is still the largest sector, but its share has fallen. Partech counted US$769 million of fintech equity in 2025, 25% of all equity funding, as cleantech, healthtech and enterprise software grew (Partech, 2025 report). From January to September 2026, fintech raised US$760 million, 35% of the total and second only to logistics and transport. Eighty fintech startups raised at least US$100,000 in that period, more than in any other sector (Africa: The Big Deal, October 2026). At the top end, OPay has filed for a US listing (Africa: The Big Deal, October 2026).

What fintech opportunities exist beyond mobile money?

Credit for small businesses and households

Demand for small, fast credit is large. Safaricom's overdraft product Fuliza disbursed KES 1.47 trillion in the year to March 2026, to 17.7 million distinct users (Tech-ish). CBK reports that licensed digital credit providers had granted about 9.6 million loans worth KES 165.1 billion by August 2026 (CBK, September 2026). Lending tied to an asset works too: M-KOPA says it has extended over US$2 billion in credit to 10 million customers, with products that include smartphone financing and e-motorbikes (M-KOPA, July 2026).

Tools for merchants

M-PESA's merchant base grew 71% to 3.1 million, including 2.1 million Pochi la Biashara tills (Tech-ish). Most of those businesses still need bookkeeping, stock control, invoicing and working capital. Software that sits on top of their payment data is an opening.

Savings and investment

Safaricom's wealth products, Ziidi and Mali, grew to KES 21.0 billion in assets and 2.2 million active customers in the year to March 2026, from KES 9.6 billion and 600,000 (Tech-ish). That growth points to demand for simple investment products sold by phone.

Cross-border payments

In February 2026, Pesalink became a connectivity provider for the Pan-African Payment and Settlement System (PAPSS), linking its 80-plus Kenyan bank, fintech, SACCO and telco participants to more than 160 banks and fintechs on PAPSS, with settlement in local currency (TechAfrica News, February 2026). Founders building B2B payments, payroll or trade tools can now plan on these rails.

Which licences does a fintech need in Kenya?

  • Payments and e-money. Payment service providers are authorised by CBK under the National Payment System Act 2011 and its 2014 Regulations (CBK).
  • Digital lending. Digital credit providers are licensed under section 59(2) of the CBK Act. CBK had licensed 281 by 30 September 2026 and received over 900 applications since March 2022. It brought in licensing after public complaints about high costs, unethical debt collection and abuse of personal data (CBK, September 2026).
  • Virtual assets. The Virtual Asset Service Providers Act 2025 came into force on 4 November 2025, and the VASP Regulations 2026 were gazetted on 22 July 2026, covering licensing of exchanges, custodial wallets, stablecoin issuance and tokenisation (Afriwise).
  • Everything else. Insurance, investment and deposit-taking products sit with other regulators. Ask early, and budget months for approval.

For the integration side, see our guide to integrating mobile money payments into your app.

How do I start a fintech company in Kenya?

  1. Name a specific, frequent financial problem. For example, stock financing for a hardware shop that restocks weekly. A narrow problem is easier to price and test.
  2. Map the licence before the product. Decide whether you will hold a licence, partner with a licensed bank or provider, or start with software that does not touch customer funds.
  3. Plan distribution through people. Agents, SACCOs, merchant associations and suppliers often reach customers faster than app downloads.
  4. Build consumer protection in. Clear pricing, fair collections and data protection are the issues CBK names when it licenses lenders.
  5. Raise for the regulatory timeline. Licensing takes time, so plan your runway around it. Our guide to what investors look for in African startups covers the pitch.

Key facts

  • US$1.4 trillion flowed through mobile money in sub-Saharan Africa in 2025.
  • M-PESA handled 46.4 billion transactions worth KES 41.68 trillion in the year to March 2026.
  • African fintech raised US$760 million from January to September 2026.
  • CBK had licensed 281 digital credit providers by 30 September 2026.
  • Kenya's VASP Act came into force on 4 November 2025.
  • Pesalink connected to PAPSS in February 2026.

The Hackhouse Residency runs for 12 weeks with no equity taken, and our events are a good place to meet other fintech founders in Nairobi.

Frequently asked questions

Do I need a CBK licence to start a fintech in Kenya?

If you move customer money, issue e-money or lend digitally, yes, or you partner with a licensed provider. Software that only helps businesses manage their own records usually does not need one, but confirm with a lawyer.

How many digital lenders are licensed in Kenya?

CBK reported 281 licensed digital credit providers on 30 September 2026. Check the CBK directory before borrowing from or partnering with a lender.

Is crypto legal in Kenya?

Kenya now regulates virtual asset service providers under the VASP Act 2025 and the VASP Regulations 2026, which require licensing for exchanges, wallets and related services.

Which fintech sectors are growing in Africa?

In Kenya, M-PESA payments, Fuliza credit and Safaricom's investment products all grew strongly in the year to March 2026. Across Africa, fintech raised US$760 million from January to September 2026, second only to logistics and transport.

Sources

Go deeper with us. Join the Hackhouse community for conversations that go beyond the surface, where builders share the hard-won lessons that never make it into press releases.

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