FinAccess

Annual Report, FSD Kenya 2020

Kenya has received world-wide recognition as leader in financial innovation. This is a laudable achievement because finance holds the potential to unlock solutions to the real-world problems that Kenyans face in their daily lives.

The economic fallout engendered by COVID-19 has already been dire with many going without food and/or accruing different types of debt to stay afloat.

Managing your money broadly means deciding how much to set aside for the future and how much to keep handy for short term uses.

The COVID-19 crisis is creating great uncertainty about what the future holds for the economy and well-being of all.

The infection rate of COVID-19 is as yet low in Kenya, but the economic consequences are already biting.

A big question amidst the current COVID-19 has been, how are community-based finance models fairing?

The recent months have been quite surreal for many across the globe.

The COVID-19 pandemic is testing the resilience of governments, health systems, large companies, small businesses and families worldwide.

The inability of low-income households to access quality healthcare is a major challenge in dealing with unanticipated shocks. The challenge is bigger for rural households. Small rural pharmacies stock almost entirely generic medicines because these are the products that patients can afford. 

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.

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.

On the evening of Tuesday November 19th 2019, FSD Kenya held its fifth annual lecture on financial inclusion at the University of Nairobi’s Chandaria Auditorium.

The first article in a blog series examining the Kenyan credit market by FSD Kenya drew an analogy between the recent forest fires in the Amazon Jungle and the explosion of digital credit in Kenya.

On November 19th, FSD Kenya’s Annual Lecture will be held under the theme ‘Financing Kenya: 2020 hindsight for Vision 2030’.

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.

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.

Financial Sector Deepening (FSD) Kenya is pleased to announce that Anzetse Were has joined the team as Economist, effective September 2019.

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?

As I reflect on my first month leading FSD Kenya, I am struck by both the challenges we face as well as the opportunities we can seize to truly create value through inclusive finance in Kenya.

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’s work is increasingly focused on trying to help harness the on-going disruption of the sector in a way which will create real value for people.

It is with an immense sense of loss that the FSD Kenya learned of the passing of Bob Collymore, CEO of Safaricom.

Education presents an opportunity for poor households to break out of the poverty cycle in future. What are some of the interventions and finance solutions that have made a difference in education finance?

Education is the top priority for Kenyans according to FinAccess Household Survey 2019. Poor households particularly attach high value to educating their children.

FinAccess 2019 was launched last week by the Governor of the Central Bank of Kenya.  The results from this national household survey provide a comprehensive and authoritative picture of the retail financial services sector in Kenya.

This Financial Access (dubbed FinAccess) Household Survey 2019 is the fifth in a series of surveys that measure and track developments and dynamics in the financial inclusion landscape in Kenya from the demand–side.

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.