Numida unlocks Kenyan market amid surge in sector’s NPLs

Financial tech firm Numida is seeking to grow its overall balance sheet with a formal entry into the Kenyan market despite a surge in the sector’s non-performing loans (NPLs) and a high-risk operating environment.

The company said Tuesday that the decision is being driven by the need to grow revenue and the belief that higher, targeted lending can coexist with improved risk management.

“Our loan book is looking better despite the existing industry challenge in the non – performing loans here. Kenya’s MSME sector is evolving rapidly, and so are the expectations of business owners,” said Lorraine Mutambiranwa, the Chief Operating Officer (COO) of Numida.

Mutambiranwa said that the lender’s MSME lending model is built around entrepreneurs who have built successful businesses, want more than access to capital; they want a financial partner that understands their business, responds quickly, and supports their growth journey.

The microlender’s bold expansion promise comes even as Kenyan businesses are increasingly struggling to repay their debt, with the rate of non-performing loans (NPLs) climbing to a 12-year high (in the banking sector alone), according to research by the Kenya Bankers Association (KBA).

The banking association noted that this buildup of NPLs over the five years ending 2018 has been notable for its persistent rise, representing a shift from the preceding five years, when there was a significant improvement in loan quality to between 4.4 per cent and 8 per cent during the 2009–2013 period.

Indeed, the ratio of gross Non-Performing Loans (NPLs) to gross loans in Kenya’s banking sector alone stood at 15.3%. This reflects an improving trend in asset quality for commercial banks, dropping from a peak of 17.6% and down from the 15.6% recorded in February 2026.

To succeed in this market, the Ugandan–headquartered firm says it will rely on four key principles, namely: human connection, meaningful growth capital, speed in loan disbursement, and rewarding its customers.

“We fund journeys…and this has been demonstrated by our numbers so far, where we distribute an average of Kes 70million in loans to our SMEs here,” noted Lorraine.

She spoke during the official launch of its Kenyan operations, introducing a new standard in MSME financing through its premium lending proposition designed for established business owners seeking faster, fairer, and more predictable access to working capital.

Operating across East Africa since 2017, Numida has supported more than 120,000 MSMEs in Uganda, Kenya, and Rwanda with working capital, building a reputation as a long-term financial partner focused on business growth rather than transactional lending.

The launch signals Numida’s entry into Kenya’s growing premium MSME segment, serving established entrepreneurs with monthly revenues of KES 300,000 and above who require financing solutions that match the sophistication and ambitions of their businesses.

Industry data

Despite accounting for more than 7.4 million businesses and employing over 14 million people, many Kenyan MSMEs continue to face challenges accessing financing that is both affordable and tailored to their needs.

Traditional lending processes can be slow and rigid, while many digital lending options remain beyond reach for most MSMEs.

“The conversation around MSME finance has always centered around access, but today, the market is evolving, and premiumization of MSME lending is becoming a new trend as Kenyan businesses mature,” said Kevin Mutiso, Chairman of the Digital Financial Services Association of Kenya (DFSAK).

“Established entrepreneurs are now looking for both fast loans and dependable financial partners who understand their businesses, appreciate their ambitions, and provide superior customer experiences. Just as premium offerings have transformed sectors such as banking, telecommunications, and retail, we are now seeing the same shift take place in business financing.”