Kenya
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In Brief
Located in East Africa, Kenya has become not only a regional powerhouse in East Africa but for the wider African continent and Middle East and Africa region as a whole.
In particular, its capital and largest city, Nairobi, is even dubbed the “Silicon Savannah” due to its strong tech ecosystem, acting as a regional hub.
Both multinational companies and those specifically in the tech and fintech sphere have made strong investments in Kenya, boosting foreign direct investment.
In 2023, both Microsoft and Visa made serious commitments to the country, with the former announcing a new office for its African Development Centre, along with a first for Africa – the Microsoft Africa Research Institute (MARI), while Visa also launched its first innovation hub in Africa – the Visa Innovation Studio.
Alongside other FinTech hubs in the region – Egypt, South Africa and Nigeria – Kenya now joins the circle of being one of the major four fintech hubs in Africa.
Investment into the country is increasing, with Kenya attracting more venture funding in the first three months of 2023 at $482 million than it did throughout all of 2022.
Nairobi recently launched its new Nairobi International Financial Centre (NIFC), which will offer investors across the financial services sector support and offers such as tax and immigration incentives, as well as office space.
Kenya’s lending subsector is the largest at 30%, followed by payments at 27%, blockchain at 15%, WealthTech sits in fourth place with 7%, Financial Management and InsurTech represent 6% each. Other FinTech subsectors comprise the remaining 9% of Kenya’s FinTech ecosystem.
RetailPay Africa:
A digital platform connecting retailers directly to suppliers for efficiency
SpreeNego:
Supporting over 8 million people monthly, and capitalizing on a 2 trillion market, Spreenego aim to ensure a steady cash flow to business owners through microfinancing.
Mtaji:
Mtaji Technologies (Mtaji) is an Africa-focused online working capital marketplace democratizing access to capital for SMEs through smart credit. Their proprietary AI-based credit rating algorithm gives investors real-time rating and price recommendations thereby accelerating credit decisioning by investors.
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Market Summary
Economy
The Kenyan economy is the largest in East Africa. After independence, Kenya promoted rapid economic growth through public investment, encouraged smallholder agricultural production and provided incentives for private (often foreign) industrial investment. Additionally, Kenya is a regional transportation and financial hub.
Kenya has experienced continued growth in GDP over the last few years, supported by ongoing public infrastructure projects, strong public and private sector investment and appropriate economic and fiscal policies, reflecting the broad-based and diversified nature of the Kenyan economy.
Kenya’s financial sector is vibrant, well developed and diversified in the region and has highest financial inclusion in the region and globally. Banking sector is well capitalized, profitable with capital adequacy and liquidity ratios above the recommended thresholds.
Macroeconomic stability has been preserved over the last few years with inflation, interest rates and exchange rates remaining largely stable, thanks to the prudent monetary and fiscal policies.
In 2007, the Government of Kenya pronounced “Vision 2030” as its long‑term plan for attaining middle income status as a nation by 2030. To ensure implementation of the Vision 2030, the government prepares successive medium-term plans (“MTPs“) that outline the policies, programmes and projects that the government intends to implement over a five-year period.
Culture
Kenya is home to breathtaking landscapes, interesting cultures, beautiful national parks and wildlife reservations. It is an ideal place to experience the fragrant smells of street food and colorful corner markets depicting it’s busy and bustling energy. With an abundance of successful conservation efforts, Kenya is known for preserving and protecting its stunning creatures and landscapes.
Fast facts
Population: 53 million
Language: Swahili
Currency: Kenyan Shilling
Political System: Presidential Representative Democratic Republic
Legal System: Statutory & Common law
IA Partner & FinTech Hub
Founded in 2021 by a team of experienced professionals within the fintech space, The Association of FinTechs in Kenya was established to spearhead and advocate for digital innovation as a core strategy for efficiency, scalability, and competitive positioning.
Their mission is to spearhead innovation for Kenya’s business, government, NGO and finance communities, with a vision to becoming the world’s leading innovation hub.
