If you’ve been watching the fintech space closely, you’ll notice something interesting: Nigerian startups aren’t just expanding — they’re migrating. But not to Silicon Valley or London. East Africa is calling. And Nigerian fintechs are answering.
Just this June, Moniepoint — one of Nigeria’s most successful fintech giants — acquired a 78% stake in Sumac Microfinance Bank in Kenya. It didn’t make a big noise, but it was a significant move. Behind that quiet press release is a strategic pivot that clearly indicates: the East African market is the new frontier.
So, Why East Africa?
Let’s break it down. Kenya, Uganda, Tanzania, and Rwanda are not just countries with growing economies — they’re hotbeds for mobile money innovation. Take Kenya, for instance. The country boasts over 38 million mobile money accounts (in a population of just over 50 million), largely thanks to M-Pesa. According to the Central Bank of Kenya, the country recorded KSh 7.2 trillion (about $55 billion) in mobile money transactions in 2023 alone.
Compare that to Nigeria, where mobile money is still crawling behind. Despite its size, Nigeria only recorded around $28 billion in mobile money transaction volume last year. Regulatory hurdles and a legacy banking structure have slowed things down. But in East Africa, fintech is the default, not the disruptor.
Moniepoint Is Not Alone
Moniepoint is just the latest in a trend. In 2024, Flutterwave received approval to operate in Rwanda and Kenya. Paystack is increasingly building partnerships with East African firms. Chipper Cash, another cross-border payments startup with Nigerian roots, already runs operations across the region.
Why? Because East Africa offers something that’s hard to find elsewhere: an already digitised financial culture that’s open to new players. But it’s not just about the numbers, it’s also about the vibes. East Africa has a track record of welcoming innovation. Governments there are more adaptive, regulators are quicker, and fintech is less of a threat and more of a partner to the system.
What Nigerian Fintechs Bring to the Table
Here’s the other side of the coin: Nigerian fintechs aren’t just invading. They’re contributing. These companies have built resilience in one of the world’s most difficult markets. Nigeria’s erratic power supply, rigid regulation, and cash-dominated culture have forced fintech founders to be scrappy, smart, and ruthlessly efficient. So when they land in Nairobi or Kigali, they bring with them battle-tested systems, bold marketing, and operational edge. More importantly, they bring pan-African ambitions.
We’re seeing the rise of Afro-Fintechs, not just startups from Africa, but startups building for Africa. This isn’t just about finding new users. It’s about connecting fragmented payment systems across borders, enabling true intra-African trade, and turning mobile money into a continental language.
The Real Win? Cross-Border Growth
East Africa isn’t the destination. It’s the bridge. A well-executed East African presence could be the launchpad to Francophone Africa, Southern Africa, and even the Middle East. What Moniepoint did by acquiring Sumac isn’t just a deal — it’s a foothold. And if we’ve learned anything from this playbook, more fintechs will follow.
This isn’t just another market expansion story. It’s a sign of maturity. A sign that Nigerian fintechs are no longer content with local wins. They’re building companies that last. Companies that cross borders. Companies that scale. And in 2025, East Africa might just be the smartest place to bet on Africa’s next big fintech success.
