The research, set out in a report ‘FinTech in Kenya: Toward an enhanced policy and regulatory framework’, developed by PwC, found that Kenya is already well-established as a leading source of FinTech innovation, developing solutions which are leapfrogging existing infrastructure and driving financial inclusion and the economic empowerment of its citizens. For example formal financial inclusion in services and products in Kenya has grown significantly from 26.7% in 2006 to 83.7% in 2021  – growth largely driven by new financial technology and innovations, especially in mobile money and mobile banking.
Digital financial products have played a significant role in catalysing financial development and inclusion across the country, especially because of the affordable and accessible services that have subsequently been layered onto the mobile and digital platforms infrastructure.
Kenya’s efforts in the growth of FinTech can be seen through its forward-thinking financial inclusion strategies and incentivising schemes such as the phased enactment of a dedicated payments and digital lending regulatory framework and the adoption of regulatory sandboxes. However, gaps and the challenges still exist that impact the evaluation, approval and regulation of new and complex FinTech products and innovations.
In the report, TheCityUK and PwC make the case for a series of policy and regulatory enhancements which, if taken forward, could spur greater innovation, unlock capital and investment, and further accelerate financial inclusion.
Oscar Njuguna, Acting CEO, Nairobi International Financial Centre (NIFC), said,