Kenyan fintech 4G Capital has secured $2 million in new funding to scale its lending operations across East Africa, according to an announcement on April 4. The capital will be used to expand the company’s ‘touch-tech’ model, which combines digital credit scoring with in-person support for micro-enterprises, aiming to deepen financial inclusion in the region.

The company, founded in 2013, provides unsecured working capital loans to small businesses, primarily in Kenya and Uganda. Its model involves using proprietary algorithms to assess creditworthiness while maintaining a network of field agents who offer business training and support to borrowers. This hybrid approach is designed to serve entrepreneurs who are often excluded from traditional banking services due to a lack of formal credit history or collateral.

East Africa has one of the highest rates of mobile money adoption in the world, a market dominated by services like Safaricom’s M-Pesa. While these platforms have dramatically increased access to basic financial transactions, access to credit remains a significant hurdle for many small businesses. 4G Capital’s expansion targets this gap, focusing on micro-retailers and traders who need small, short-term loans to manage inventory and cash flow.

The new funding will support the company’s growth in its existing markets and potentially facilitate entry into new territories within East Africa. The region’s fintech sector has seen sustained investor interest, though funding has become more selective in recent years, with a focus on companies demonstrating clear paths to profitability and scalable unit economics.

4G Capital’s announcement comes amid broader activity in African fintech infrastructure. In a separate development, South Africa-based Littlefish recently raised $9.5 million in a Series A round to expand its merchant-focused platform for banks across the continent. While both companies operate in the financial services ecosystem, 4G Capital’s core business is direct lending to micro-enterprises, whereas Littlefish provides back-end technology infrastructure to financial institutions.

The success of models like 4G Capital’s is often measured by repayment rates and the tangible impact on borrowers' businesses. The company reports that its integrated approach of capital plus training contributes to high repayment performance and helps build the financial profiles of its clients over time. As the company scales, a key challenge will be maintaining the effectiveness of its ‘touch’ component—the personalised agent support—while achieving the cost efficiencies required for sustainable growth.