Financial Services

The banking sector in Kenya is notably diversified, thanks in large part to the country’s efforts to boost financial inclusion. Kenya’s predominant mobile money platform, M-Pesa, is perhaps the best known example, but other elements of the Kenyan system, such as savings and credit associations, microfinance and agency banking, also underscore the diversity and innovation...

The government has identified the cost of finance for small and medium-sized enterprises (SMEs) as a major challenge to the country’s long-term goals. Indeed, the lending market has proven to be one of the more contentious topics for the country’s banking sector. By the spring of 2014 the problem was approaching its third year as a topic of debate, and in early April the...

The country hosts a range of existing mobile money products and innovative experiments, making it one of the world’s key laboratories for financial inclusion. With government support – specifically, from the Central Bank of Kenya (CBK) – development agencies and private-sector entrepreneurs continue to push innovations and study implementation methods. As a result, while...

Savings and credit cooperative societies (SACCOs) are a fast-growing segment within Kenya’s financial services system and are often a first choice for borrowers, particularly in the middle class. The cost of funds is cheaper and the application process is faster and less bureaucratic. Their popularity is one of the reasons why a dedicated regulator was recently created...