NALA Money, the financial technology company based in Tanzania, is set to invest $5 million (KES 636 million) into its Kenyan operations.
The firm intends to expand its local presence to take advantage of the rising influx of remittances from overseas, coinciding with the investment. Additionally, the Tanzanian global payments company expresses optimism about the potential for fintechs in Kenya.
NALA’s CEO and Founder, Benjamin Fernandes, stated that their investment is approaching the value of Kenya’s exports, which generated approximately $5.77 billion (equivalent to KES 734 billion) in foreign currency during the same timeframe.
We want to increase our commitment to Africa and Kenya by doing rather than trying, which is a sign of what is coming for NALA in Kenya.NALA Founder & CEO – Benjamin Fernandes
According to government statistics, over three million Kenyans reside in foreign countries, predominantly in the US and UK. These expatriates are estimated to send back home approximately KES 500 billion annually.
Additionally, NALA Money has introduced a cross-border payments system for businesses that it believes will reduce obstacles to capital inflows into Kenya.
The Permanent Secretary for the State Department for Diaspora Affairs, Roseline Njogu, stated that NALA’s recent innovation, which allows direct payments from abroad, will empower Kenyans by giving them greater control over their investments and reducing the likelihood of financial losses.
Despite numerous methods of sending money to Africa from abroad, the continent still has the highest transfer fees. According to the World Bank, the average transfer fee for sending money to Africa is 9% of the amount sent. Additionally, many current options have undisclosed fees that make determining the actual cost of sending money challenging.