Since 2016, we have seen rising levels of financial access and growth in the use of formal finance in Kenya, mainly driven by digital financial services. This includes expanding use of formal savings and loans and more frequent use of accounts.
Through its AfyaPoa range of products, Insurance for All (IFA) has been delivering affordable and relevant protection to underserved Kenyans in the informal sector for over two years. Intending to broaden its reach through new gig economy partnerships and strengthen and improve its products and distribution approaches, IFA, with support from FSD Kenya and research assistance from 17 Triggers, conducted a four-month research and design phase followed by a six-month pilot.
In 2019, FSD Kenya and Turaco – a Kenyan microinsurtech startup providing simple, low-cost health and life insurance products to emerging market consumers – collaborated on a three-month pilot project in with a leading digital lender in Kenya. The study found that 80% of respondents were most interested in an in-patient cover to cushion the cost of hospital admissions, saying getting such insurance for free is incentive enough to repay their loans on time. Almost 50% of the treatment group opted in to having insurance payments added to their future loans, citing the idea of low-cost insurance from a financial service provider they know and trust as a key incentive.
This is clearly an unprecedented time. Over the past few months, the world has been battling the COVID-19 pandemic which has seen health systems burdened and unable to cope with the rising numbers of infected people.
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.
This year’s lecture titled “Financing Kenya: 2020 hindsight for Vision 2030” was delivered by Dr. David Ferrand. David is a long-time observer of the Kenyan financial sector. He played a key role in FSD Kenya’s inception nearly 20 years ago and served as its director until June 2019.
On 19th November 2019, the 5th FSD Kenya Annual Lecture took place at the University of Nairobi’s Chandaria Auditorium. Dr David Ferrand, a long-time observer of the Kenyan financial sector and former FSD Kenya director was the speaker at this year’s event.
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.
FSD Kenya is pleased to support the Afro-Asia Fintech Festival (www.afroasiafintech.net) co-hosted by the Central Bank of Kenya and the Monetary Authority of Singapore on the 15-16 July at the Kenya School of Monetary Studies.
The 4th FSD Kenya annual lecture on financial inclusion is set to take place on the 8th of November 2018. This year’s lecture titled, “The inevitable: a glimpse of the future of fintech” will be delivered by Julian Kyula, an accomplished entrepreneur and business leader recognized locally and internationally.
Internationally recognised tech entrepreneur, Julian Kyula, was the guest speaker at the 4th FSD Kenya Annual Lecture that took place on 8th November 2018 at the Chandaria Center for Performing Arts, University of Nairobi Towers.