Kenya has made significant strides in financial inclusion, with formal financial inclusion services and products growing from 26.7 percent in 2006 to 83.7 percent in 2021. This growth is largely attributed to new financial technology and innovations, especially in mobile money and mobile banking.
According to a report by TheCityUK and PwC, Kenya has the potential to become a continental leader in FinTech and dramatically boost financial inclusion. To achieve this, the public and private sector must work together to address barriers to entry and growth for start-ups, provide access to more capital, and adopt a cross-sector approach to FinTech regulation.
As Oscar Njuguna, Acting CEO of the Nairobi International Financial Centre (NIFC), noted, '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.'
The report highlights the importance of a supportive regulatory framework in attracting more investment into the Fintech sector. As Scott Devine, Head Middle East and Africa at TheCityUK, said, '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.'
The report makes several recommendations for policymakers, including establishing a FinTech provider-facing one-stop-shop or FinTech office, creating a consolidated FinTech sandbox, and encouraging more collaboration amongst FinTech providers, regulators, and stakeholders.
Ultimately, Kenya aims to develop a national FinTech policy framework that supports FinTech transformation and innovation, promotes industry growth, and removes duplicative regulations in financial services.
