A new research from TheCityUK and the Nairobi International Financial Centre (NIFC) developed by PwC highlights Kenya's potential to become a continental leader in FinTech and boost financial inclusion.
Kenya is already well-established as a leading source of FinTech innovation, developing solutions that leapfrog existing infrastructure and drive financial inclusion and economic empowerment of its citizens. Formal financial inclusion in services and products in Kenya has grown significantly from 26.7% in 2006 to 83.7% in 2021.
According to the report 'FinTech in Kenya: Toward an enhanced policy and regulatory framework', digital financial products have played a significant role in catalysing financial development and inclusion across the country. Kenya's efforts in the growth of FinTech can be seen through its forward-thinking financial inclusion strategies and incentivising schemes such as the phased enactment of a dedicated payments and digital lending regulatory framework and the adoption of regulatory sandboxes.
However, gaps and challenges still exist that impact the evaluation, approval, and regulation of new and complex FinTech products and innovations. To address these challenges, TheCityUK and PwC make the case for a series of policy and regulatory enhancements that could spur greater innovation, unlock capital and investment, and further accelerate financial inclusion.
Joseph Githaiga, Associate Director, PwC Kenya, said, 'FinTech is changing the nature of financial services globally. It has made itself a key driver of economic development by speeding up financial inclusion and introducing innovative financial products at a rapid rate.'
Glynn Austen-Brown, Partner, PwC UK, added, 'The progress made in digital innovation worldwide calls for countries to recognise the evolution of financial services offerings. Kenya's efforts in the growth of FinTech can be seen through its forward-thinking financial inclusion strategies and incentivising schemes.'
Oscar Njuguna, Acting CEO, Nairobi International Financial Centre (NIFC), said, 'Nairobi has potential to be a leading financial services centre in Africa, and to realise this vision, we must strive to be at the forefront of future-focused growth areas like FinTech.'
