This archive report was first published on 16 July 2019.
On July 15, 2019, Kenya and Singapore took a significant step towards financial innovation by signing a Memorandum of Understanding (MOU) between their respective Central Banks.
The MOU aims to facilitate collaboration between the two countries in the development of foundational infrastructure for identity, data, and electronic Know Your Customer (KYC) procedures.
Speaking at the inaugural Afro-Asian Fintech Festival in Nairobi, Central Bank of Kenya (CBK) Governor Patrick Njoroge emphasized the importance of collaboration in creating an effective ecosystem for financial innovation.
“Collaboration offers the best chance for creating an effective eco-system for financial innovation. In 2007, Africa became the cradle of fintech with the launch of Mpesa which has continued to spur additional innovation,” he said.
Treasury Cabinet Secretary Henry Rotich also highlighted the potential benefits of the collaborative venture, stating that it could provide avenues to drive down transactional costs and encourage Kenyans to save, invest, borrow, create wealth, and use financial services.
President Uhuru Kenyatta, who graced the opening of the fintech festival, co-hosted by the Monetary Authority of Singapore (MAS), expressed his expectations for the formal collaboration between the two states, stating that it would provide new avenues for growth and engagement, including improved trade between the two partner states.
“The MOU sets the foundation for joint innovation projects and the application of emerging digital technologies. This projects will enhance the digital infrastructure in both countries and catalyze trade and investments between Asia and Africa,” said President Kenyatta.
