Kenya's financial technology ecosystem has made significant strides in recent years, with the country emerging as a leading source of FinTech innovation. According to a report by TheCityUK and the Nairobi International Financial Centre (NIFC), Kenya has the opportunity to become a continental leader in FinTech and boost financial inclusion by enhancing its existing financial technology ecosystem.
The report 'FinTech in Kenya: Toward an enhanced policy and regulatory framework' highlights the country's progress in financial inclusion, which has grown significantly from 26.7 per cent in 2006 to 83.7 per cent in 2021, according to the CBK FinAccess Household Survey.
Joseph Githaiga, Associate Director, PwC Kenya, noted that while Kenya is a leader in the FinTech world, increased impact can be achieved by allowing greater innovation and attracting more investment into Fintech. A supportive regulatory framework is key in attracting more players into the market, setting the stage for increased innovation in the sector.
The report makes the case for a series of policy and regulatory enhancements which, if taken forward, could spur greater innovation, unlock capital and investment, and further accelerate financial inclusion. Glynn Austen-Brown, Partner, PwC UK, emphasized the need for countries to recognize the evolution of financial services offerings and to address the challenges that FinTech players face.
According to Oscar Njuguna, Acting CEO, Nairobi International Financial Centre (NIFC), Nairobi has the potential to be a leading financial services centre in Africa, and to realize this vision, the city must strive to be at the forefront of future-focused growth areas like FinTech.
Scott Devine, Head Middle East and Africa, TheCityUK, noted that Kenya stands out as one of the world leaders in mobile money and is home to some of the best-known examples of FinTech-based financial inclusion. Now is the time to build on this strong foundation with government and regulators working closely with FinTech providers in developing policy and regulation that positively shapes the sector and lowers market barriers.
