For years, one question has haunted Africa’s fintech space: who, if anyone, can challenge M-Pesa?
Cloud9, a sleek digital bank built with the youth in mind, thinks it has the answer. As it launches into Kenya’s vibrant fintech arena, the only question that matters is, will the market agree?
Announced just two days ago on October 1, 2025, via Mbaabu’s personal blog, Cloud9 isn’t positioning itself as mere competition; it’s framing itself as a “movement” for financial dignity, belonging, and opportunity.
In a continent where over 70% of the population is under 30 and digital payments already channel more than $1 trillion yearly, Cloud9 aims to reimagine banking for a generation fluent in side hustles, cross-border gigs, and instant gratification.
With a waitlist already live and no firm launch date in sight, the excitement is evident. But can this YC-alum pair, fresh off high-profile exits and funding rounds, deliver on their promise to elevate Africa’s youth from financial frustration to freedom?
Cloud9: A “10x Better” Bank for the Hustle Generation
At its core, Cloud9 is a mobile-first digital bank designed to “move money that moves and elevates people.” Gone are the days of outdated legacy systems; this is banking optimised for apps, gigs, and global flows. Key promises include:
- Real-Time Payments and Borderless Spending: Seamless transfers in dollars, shillings, or pounds without the usual fees or delays. Imagine funding a freelance invoice from Lagos to Nairobi in seconds.
- High-Yield Savings and Wealth Tools: Earn competitive returns on savings while accessing intuitive tools to track, invest, and grow wealth, tailored for irregular income streams.
- Quick, Fair Credit: Instant loans based on real behaviours like gig earnings, not just credit scores, bypassing exploitative traditional options.
These features aren’t merely fancy; they were designed to address real-world annoyances.
Currently in pre-launch, the waitlist is open at cloud9.money, inviting early adopters to join the “movement.”
Investors and timelines remain under wraps, but given the duo’s history of attracting capital (from YC to pre-seed hauls), funding announcements could follow soon.
Cracking the Stronghold: Cloud9’s Edge in a Crowded Arena
Cloud9’s secret sauce? Hyper-focus on the “hustle generation.” While M-Pesa excels at basic transfers, Cloud9 bets on holistic empowerment, blending payments with tools for ambition.
Borderless, fee-free spending could draw cross-border freelancers, eroding M-Pesa’s remittance hedge.
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High-yield savings and behavioural credit might pull in savers tired of low returns, especially as Africa’s youth swell to 42% of the global total by 2030.
| Feature | M-Pesa | Cloud9 (Promised) |
|---|---|---|
| Core Strength | Mass-market transfers & scale | Youth-centric, rewarding ecosystem |
| International Fees | High (up to 7.5%) | Zero-fee borderless spending |
| Savings/Investments | Basic Lipa Na M-Pesa savings | High-yield + wealth tools |
| Credit Access | Fuliza (short-term loans) | Quick, behavior-based credit |
| User Focus | Broad (50M+ users) | Millennials/Gen Z (digital-first) |
| Innovation Edge | Recent core upgrade | Real-time, culturally attuned app |
The Resilient Founders: From Campus Code to Fintech Frontiers
Tesh Mbaabu and Mesongo Sibuti aren’t newcomers to building bold ventures in Africa’s unforgiving startup ecosystem.
It all started during their undergraduate days at the University of Nairobi, where the duo co-founded Mesozi, a software firm focused on clarity-driven solutions, with Mbaabu as CEO and Sibuti as CTO.
From there, they launched Cloud9xp, an adventure travel marketplace that connected users to leisure experiences across Africa.
The platform gained traction, earning Mbaabu a spot in the Forbes Africa 30 Under 30 list, before they exited to HotelOnline in 2020.
Their big break came with MarketForce, the B2B e-commerce platform they co-founded in 2018. Backed by Y Combinator’s Winter 2019 batch, it raised a whopping $40 million in Series A funding, powering informal retail with tools like RejaReja for inventory management.
But the “funding winter” hit hard. In April 2024, amid global economic headwinds, MarketForce shuttered RejaReja, shifting away from B2B e-commerce due to scaling challenges and dried-up capital. Mbaabu later reflected on the pain: “We got this completely wrong, and it hurt us.”
Undeterred, they joined Kenyan social commerce startup Chpter as co-founders in late 2024.
There, they supercharged growth, securing a $1.2 million pre-seed round and inking a pivotal partnership with Flutterwave to expand WhatsApp-based selling into 11 new African markets.
By June 2025, Chpter had acquired 1,500 merchants in under four months under their leadership.
Yet, in a surprise move last month, they stepped down in September 2025, handing the control back to original CEO Mark Kiarie to refocus on their next chapter: fintech.
This track record from campus experiments to multimillion-dollar raises and strategic exits positions Mbaabu (now Cloud9’s CEO) and Sibuti as battle-tested visionaries.
Built by “Africans, ex-bankers, and entrepreneurs” who’ve endured the very pains they’re now solving, Cloud9 feels like a natural evolution.
M-Pesa’s Throne
No discussion of digital finance in Africa skips M-Pesa. Launched in 2007, it’s not just a service; it’s infrastructure, powering remittances, e-commerce, and even microloans for over 50 million users, with a 90.9% market share in Kenya alone as of June 2025.
Its recent core upgrade, completed in September 2025, has boosted transaction speeds and security, solidifying its role in a $270 billion annual processing ecosystem.
Yet, for all its triumphs, M-Pesa has blind spots, especially for the youth it claims to serve. High fees on international transfers, limited investment options, and a minimalist interface can feel outdated in a TikTok-fuelled world of instant everything.
Traditional banks, meanwhile, are slammed for slowness and rigidity, leaving Gen Z underserved despite their entrepreneurial bent (1 in 3 Africans already runs a side gig).
Enter Cloud9: a sleek, youth-centric alternative that prioritises “dignity” over transactions.
The Ripple Effect: Toward True Financial Freedom?
Cloud9 arrives at a pivotal moment. Africa’s fintech surge, fuelled by 600 million mobile subscribers, promises inclusion, but only if it bends toward the bold.
By tackling legacy pains head-on, Mbaabu and Sibuti aren’t just building an app; they’re architecting a future where young Africans don’t just survive the system, they thrive in one built for them.
Will Cloud9 dethrone M-Pesa? Unlikely overnight. But in elevating the underserved to “financial freedom,” it could spark the ripples that reshape the continent’s $1 trillion digital economy.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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