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.
Today, I am honoured to represent FSD Kenya at the UK Africa Investment Summit in London. I am inspired by the potential of the entrepreneurs, investors, government officials and civil society organisations who are full of ideas, solutions, and drive to leverage connections and learning across the continent to grow Africa’s economy and wellbeing.
Starting with microcredit in the late 1980s, there has been a growing movement of multilateral institutions, private foundations, non-profits, corporations and governments that aims to provide formal financial services to low-income market segments around the world.
Since the launch of M-Shwari in 2012, the number of digital lenders and loans disbursed has grown substantially. Advances in credit scoring, few regulatory barriers and the widespread use of mobile phones and mobile money have enabled growth of the digital lending industry, giving borrowers a quick and convenient option for credit.
This report is the second in a series of studies that measure the cost of banking services in Kenya. It follows the first report that was released in 2017 and constitutes a complementary element in the measurement of the financial inclusion landscape in Kenya.
Digital credit has been instrumental in granting formal credit in ways that were not conceivable a decade ago. It has provided individuals with the tools to manage their day-to-day needs and working capital for small enterprises.
Natasha is a young woman who has a cake baking business on the outskirts of Nairobi. She has a bank account for her business which she uses intensively. Natasha’s business was doing well and she needed a loan to expand.
The focus on the potential and real risks of digital credit, while commendable, runs the risk of taking our collective eye off the wider credit market, which has a much more significant impact on Kenya’s economy.
On the 5th of September 2019, the Financial Sector Deepening (FSD) Kenya and the Consultative Group to Assist the Poor (CGAP), held a stakeholder validation workshop in Nairobi, where they presented the findings of a research study that identified seven key financially underserved segments of the Kenyan population and discussed the potentially viable business cases and policy implications that financial market players could tap into.
In April 2019, the 2019 FinAccess Household Survey revealed that Kenya had made extraordinary strides in financial inclusion. While FinAccess 2019 shows that financial inclusion has peaked at 83% among Kenyans, its findings also evoke poignant questions.
The use of an alert system that flagged Twitter conversations on consumer protection topics, when they rose above certain thresholds, shows promise as a new consumer protection market monitoring tool that we could use in Kenya to address the substantial gaps in consumer protection monitoring and enforcement.
Manufacturers of cars or microwave machines are duty bound to ensure that their products are safe for use. Why can’t financial regulation introduce a similar obligation to ensure financial products and services are not negligently developed and sold, causing harm to consumers?
Kenya aims to become a middle-income country by 2030, delivering a high quality of life to all. Finance plays a central role in our economy, facilitating trade and underpinning the efficient pooling and allocation of resources and risk.
FSD Kenya set out to explore ways of using finance to build livelihoods of poor households in Kitui. The survey identified indigenous poultry and pulses as the agriculture value chains with the greatest opportunity for low-income households.
The FinAccess Household Survey, commonly referred to as FinAccess, is a series of surveys jointly conducted by the Central Bank of Kenya (CBK), the Kenya National Bureau of Statistics (KNBS) and FSD Kenya every two to three years to establish the level of financial inclusion, as well as to measure the drivers and usage of financial services in Kenya.