Financial Services

The government has a long history of intervening in Kenya’s banking industry. Before the financial sector was fully liberalised in the 1990s, state actors maintained a firm grip on credit allocation to various areas of the economy, only granting a greater share of funds to sectors it deemed to be strategically important. This approach, however...

The past year has been a challenging one for Kenya’s banks. As the full-year results for 2017 began to emerge, the effects of a new cap on lending interest rates become apparent, with most banks reporting reduced margins and profitability. A tighter lending environment, however, has encouraged banks to find alternative routes to revenue. Technological innovation, in particular...

With its large population, diverse economy and an insurance penetration rate of less than 3% of GDP in the first quarter of 2018, compared to a global average of more than 6%, Kenya holds significant promise as an insurance arena. Recent years have seen the government and the industry regulator attempt to realise this potential: key measures...

As Kenya’s insurers respond to increasing competition by seeking new routes to premium, technology is playing a markedly important role in the market. In 2016 the Association of Kenya Insurers (AKI) remarked upon the rising popularity of so-called insurtech solutions, noting in its annual report that digitalisation is reducing customer friction points, and insurers are...