Consumer Protection

Financially underserved Kenyans and their market potential: A segmentation study

January 24th, 2020

This segmentation study identifies Kenyans whose financial needs are not adequately met by the solutions available in the financial market, as well as the untapped opportunities they offer to financial service providers. The study was conducted by FSD Kenya and the Consultative Group to Assist the Poor (CGAP), using data from FinAccess 2019.


Over the past two decades, Kenya has made significant strides in financial inclusion. According to the 2019 FinAccess household survey, 80% of Kenyan adults have a transactional account and 83% own at least one formal financial device. However, account ownership alone does not drive inclusive economic development. It is the effective usage of financial services that improves welfare and deepens overall economic inclusion for individuals, communities and businesses.

This study aims to understand the financially underserved population in Kenya, as well as to identify opportunities for financial solutions that meet their needs. The study was carried out by FSD Kenya and the Consultative Group to Assist the Poor (CGAP), using FinAccess 2019 data to identify and detail seven priority segments whose needs are not adequately served by the solutions available in the financial market. These segments are regional market farmers; local market farmers; sophisticated businesses; urban small and micro businesses; urban wage earners; public sector employees; and urban aspirational youth.

These seven identified groups are crucial to the realisation of Kenya’s long-term development strategy and policy objectives, including the Big Four Agenda and Vision 2030. In policy terms, these seven segments of the financially underserved in Kenya have the potential to create employment, develop industries, enhance skills, and increase government revenue – and offer untapped opportunities to financial service providers.

Focus notes

The focus notes below highlight the specific characteristics, financial needs and market potential for each of the seven segments.

Focus Note 1 – Regional market farmers (PDF)

Focus Note 2 – Local market farmers (PDF)

Focus Note 3 – Sophisticated Businesses (PDF)

Focus note 4 – Urban small businesses (PDF)

Focus note 5 – Public sector workers (PDF)

Focus note 6 – Urban wage earners (PDF)

Focus note 7 – Urban aspirational youth (PDF)

Full report

Coming soon

Study brief

Study brief (PDF)


Download CSV datasets


Read also

Technical note: An introduction to segmentation (PDF)

Harnessing the market potential of financially underserved Kenyans

2019 FinAccess household survey



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