This archive report was first published on 8 December 2019.
Investing in Kenya's Growth Potential ¶
Kenya's fintech industry has been a major draw for investors in recent years, with venture capital firms from China, London, and San Francisco pouring money into the sector. This trend is expected to continue, with Nigeria-based fintech start-up OPay recently raising $120 million (Sh12 billion) in a Series B round from mostly Chinese investors.
OPay plans to use the new funding to launch its services in Kenya and South Africa, where the growth trajectory is strong. This kind of partnership between Africa's three largest economies is key to the financial development of the continent.
Within Kenya, those with means must do their part to inject their money back into the local economy. This can be done through the formal financial sector or the less formal philanthropic sector. If the wealthy do not have faith in Kenya's economic growth, smaller scale entrepreneurs will be less inspired to invest their money and brains here.
Setting a good example for Kenyan business people was probably part of the president's motive when he donated Sh100 million to the creation of a new school and library in Kapsisiywa, Nandi County. The complex will be located in Eliud Kipchoge's hometown, honouring him for his significant achievements and contribution to our nation's athletic records.
Business executives should follow the president's lead and invest in Kenya's growth potential. Why go abroad to develop your business when we already have all the potential here? It simply needs to be cultivated.
Impact investors are clamouring for the fintech industry because they know it unlocks Africa's growth potential. The same goes for the investment in the Kapsisiywa school and library - the president put resources where they are most needed and where there is the most growth potential.
