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Kenya map of financial inclusion
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Microfinance Information Exchange (MIX) have released detailed up-to-date maps of the financial sector in Kenya, Rwanda and South Africa to track access to finance, such as savings, credit, money transfers or microinsurance.
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Kenya has made impressive strides over the past 5 years in financial inclusion. While formal exclusion has yet to match levels in Southern Africa, the proportion of the population which is completely excluded is lower in Kenya than any other African country except for South Africa. Drivers of financial inclusion in Kenya, most notably M-PESA and Equity bank, centre on supportive regulation, innovative business models and technological advances.

Trends from the FinAccess surveys of 2006 and 2009 show that:
• Formally included people (defined as those using a bank, Postbank or insurance product) went up from 18.9% in 2006 to 22.6% in 2009.

• If we count semi-formal service providers (M-Pesa, SACCOs, MFIs), formal inclusion has jumped from 26.4% in 2006 to 40.5% in 2009, a shift of over 14 percentage points.

• Surprisingly, despite the growth in formal inclusion, the number of people also using informal services (especially ROSCAs and other community-led groups) has increased from 37.5% in 2006 to 38.7% in 2009.

• The proportion of financially excluded has decreased from 38.4 to 32.7, and this is especially apparent in urban areas where financial exclusion was cut in half within a period of barely 3 years (42.9% in 2006 to 20.9% in 2009).

• Savings usage has increased in all but the top wealth quintile between 2006 and 2009. Most importantly, savings rates increased in the lowest wealth quintile, from 23% in 2006 to 29% in 2009.

• Bank usage increased in every single wealth quintile between 2006 and 2009. Particularly the second-highest wealth quintile benefitted from this development: usage increased here from 13% to 26%.

• MFIs, even though still a small actor in the Kenyan financial sector, have doubled their outreach from 1.7% in 2006 to 3.4% in 2009.

• Accumulating Savings and Credit Associations (ASCAs) are being used more frequently across all income groups, meaning that overall usage has increased from just under a million people in 2006 to 1.5 million in 2009.
 

THE FINANCIAL ACCESS STRAND

 

 

 

 

 

 

 

 

 

 

 

 



» Read more on Bank branches, ATMs and M-PESA

RELATED REPORTS
FinAccess: Supply-side survey 2010
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This survey set out to complete a rapid assessment of the supply of financial services across Kenya. Between February and March 2010, over 90 Kenyan financial institutions were interviewed alongside 22 business service providers, in order to obtain a broad overview of the state of the financial sector.
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The role of informal financial groups in extending access in Kenya
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This report discusses the role of informal financial groups in extending access to financial services in Kenya. The scale of informal financial groups in Kenya has long been known to be extensive but reliable data at the national level has not existed.
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