This archive report was first published on 19 December 2019.
Kenya has made a notable leap in the 2020 Global Fintech Ranking by Findexable, securing the 42nd position globally. The country's fintech sector has also been recognized as the second-best in Africa, narrowly trailing South Africa's leading position.
The Global Fintech Index by Findexable highlights Kenya's efforts in regulation and its ability to host various incubators and events that foster the fintech ecosystem. This has contributed to the country's rise in the startup ranking, with Kenya moving ten ranks this year.
One of the key factors behind Kenya's success is the introduction of fintech-friendly regulations. The CMA's regulatory sandbox, for instance, allows fintechs to test innovations in a controlled regulatory environment, enabling them to work closely with the regulator and identify flaws in their innovations at an early stage.
Kenya has also been named as one of the top ten countries to watch in the fintech sector, thanks to the growing entrepreneurial success and regulatory foresight of local fintechs. Companies such as M-Pesa, Cellulant, Jumo, and Bitpesa have made significant strides in the sector, with notable innovations in lending and payments.
Nairobi has also been recognized as a growing fintech hub, with an estimated 20% of African fintechs based in the city. The city is an emerging ecosystem, with a steady rise of international investors and growing interest from global technology firms.
According to the Findexable Report, Nairobi is Africa's second-largest fintech hub, with a growing number of local investors and VCs complemented by a steady rise of international investors and growing interest from global technology firms.
Kenya's fintech sector has also performed relatively well in the Global Ease of Doing Business Index, ranking 53rd globally.
