NALA Accelerates Its Pan-African Growth
- Fintech firm NALA, originally founded in Tanzania, continues its rapid expansion across Africa. Backed by a landmark $40 million Series A funding round, NALA is investing in its Rafiki B2B payments platform, building scalable payment infrastructure—called payment rails—for emerging markets.
- The company has already achieved impressive milestones: 10× revenue growth, a 34× increase in transaction volume, and is generating positive cash flow and profits. NALA’s effective systems now serve nearly 500,000 users across African markets.
- Strategically, NALA has relocated its regional headquarters to Kenya, with its presence in Nairobi deepening through partnerships—such as integration with mobile money services like M-Pesa—enabling direct wallet payments for customers.
Kenya’s High Court Backs VAT Exemption for Fintechs—Boosts NALA’s Expansion
- In a landmark ruling, **Kenya’s High Court declared that licensed fintechs—termed payment service providers (PSPs)—are exempt from Value Added Tax (VAT), equating their services to those of banks and traditional financial institutions. This reversed an earlier tribunal decision.
- The court clarified that VAT exemptions under Kenyan law apply based on the function of a service—not the provider’s technology orientation. Critically, even digital-first fintech companies are eligible if they conduct financial operations akin to banks.
Why This Matters
| Catalyst | Strategic Impact for NALA |
|---|---|
| Regional HQ in Kenya | Access to a dynamic fintech ecosystem and operational base. |
| VAT Exemption Ruling | Reduces tax burden for fintechs—enhancing margins and scaling. |
| Pro-fintech regulatory shift | Fosters more digital financial services and broader inclusion. |
Final Takeaway
NALA’s move to Nairobi comes at an opportune moment. With a $40 million growth war chest, the company is scaling rapidly—even as Kenya’s tax environment becomes more supportive of fintech operations. The VAT exemption offers NALA (and peers) a stronger foundation to compete and operate efficiently, reinforcing Nairobi’s position as a hub for African fintech innovation.
