Kenya – Rising Fintech – Africa’s Pride

 

In 1998 Almost simultaneously, bombs explode at US embassies in Nairobi, Kenya and Dar es Salaam, Tanzania, killing 224 people. More than 5,000 are wounded. Twelve of those killed in Kenya are US citizens and the Al-Qaeda claims responsibility of the bombings. Making this attack the deadliest attack Kenya had ever seen but it did not stop there. In 2015 In the early hours of 2 April 2015, heavily armed attackers stormed Garissa University and shot dead two security guards before aiming fire at students killing 148 people. By attacking young, future professionals, the massacre aimed to disrupt the country’s socio-economic growth and stability, as well as divide a multi-faith country, analysts say.

Kenya the multi-cultural and multi -faith country has had its fair share of man-driven disasters but has remained positive and continues to progress through favourable government policy, investment in infrastructure and a vibrant entrepreneurial ecosystem. The Vision 2030 of  Kenya has enabled the country to achieve astounding results in ICT as it includes a technological blueprint with the main objective of transforming the country into a global digital player. Improvements, such as the addition of four Fibre-optic sea cables between 2009 and 2016, has stepped up the quality of connectivity and reduced costs for consumers and businesses.

The country with an estimated population of 50 Million has over the years become the Global leader in addressing Financial Inclusion through Fintech. Kenya has made the African Continent a leader in mobile banking through landmark innovations such as M-Pesa, the mobile phone-based money transfer, financing and microfinancing service, and other ways people use their mobile phones to promote commerce. M-PESA is adopted by 19 million customers, 70% plus of Kenya’s adult population,with $1.3b real time payments monthly (roughly 42% of Kenya’s GDP), P2P (76.5%), P2B (12%) and B2P (11.4%), these transaction platforms opened the door to formal financial services for Kenya’s poor.

African nations over the years have come to appreciate the role of Fintech and Financial Inclusion in Economic development. Kenya is special as it has brought about Fintech positive practical experiences, which have contributed to Inclusive Economic Development making Kenya the most financial Inclusive country in Africa. Access to M-PESA has increased per capita consumption levels and lifted 194,000 households, or 2% of Kenyan households, out of poverty. Global development institutions focusing on the development potential of financial technology frequently cite M-Pesa as a major success story in this respect, citing the poverty-reduction-claim and including a reference to Suri and Jack’s 2016 signature article.

Kenya has indeed managed to put Africa on the world map of Fintech innovation and today Kenya stands out with countries like Vietnam as global leaders in Financial inclusion through Fintech. It is time for Africa to copy the commitment of the Kenya’s ICT policies and Regulatory framework that allows growth and development of all agents in the economy which has a sustainable effect in inequality and facilitates deepening and outreach of financial systems.

On the Neil Economic scale, the current price of a litre of Petrol is KSh 105.5 (R14.67) and the price of a 330ml coke is KSh 50 (R6.98)

Apart from its security challenges Kenya is a nation of smiles, welcoming and progress. The country has several counties that all share massive and diverse tourism and economic opportunities. The people of Kenya in their stunning welcoming of Jambo, has truly a spirit of wanting to be a nation that will lead the region of Africa. It’s dynamic President Kenyatta is the new visionary’s of AFRICAN leadership and sees the nation as a business focus and that will ensure Kenya is rising to its name as Africa’s Pride.

 

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