How Kenya aims to become global hub for fintech innovation

Over the past decade, Kenya has emerged as a key player in the African FinTech landscape, leading the charge towards financial inclusion and digital innovation. With financial inclusion rates skyrocketing from 26 percent in 2006 to 83 percent in February this year, the country is poised to become a global hub for FinTech innovation. In a recent interview with Ali Hussein Kassim, Chairman of the Association of FinTechs in Kenya, CNBC Africa delved into the factors driving Kenya's FinTech revolution and the steps needed to solidify its position on the world stage. Ali Hussein Kassim highlighted that Kenya is at the forefront of the FinTech revolution in Africa, witnessing significant growth in mobile money and FinTech solutions. The industry is evolving beyond payments to encompass wealth tech and investment services, marking a new era of financial services in the country. As Kenya approaches total financial inclusion, the focus is shifting from access to value, with discussions revolving around the range and quality of financial products available to the population. While acknowledging the progress made in the FinTech sector, Kassim emphasized that it is still early days for the industry's development in Kenya and Africa. He stressed the importance of shifting the conversation from financial inclusion to financial integration, tailored to meet the specific needs of African consumers. Access to credit, particularly for micro, small, and medium enterprises, is a crucial aspect that is gaining traction in the region. In terms of regulation, Kassim noted that policymakers are beginning to catch up with the rapid pace of innovation in the FinTech space. Initiatives like the Association of FinTechs are driving discussions around policy guidelines to ensure responsible growth within the sector. While specific FinTech policies are yet to be established in Kenya and the region, a multi-stakeholder approach involving government, industry players, and regulatory bodies is seen as vital for shaping a conducive regulatory environment. Despite the lack of specific FinTech policies, Kenya has already made significant strides in establishing itself as a global FinTech hub. Nairobi, the country's capital, ranks 37th globally as a FinTech hub, surpassing prominent cities like Madrid and Dublin. Kassim emphasized the need to continue nurturing innovation and fostering a supportive ecosystem to maintain and enhance Kenya's global FinTech hub status. When asked about the lessons that other regional states can learn from Kenya's FinTech journey, Kassim emphasized the importance of continuous innovation and not becoming complacent with past successes. While acknowledging the significance of mobile money service M-PESA in Kenya's FinTech success story, he urged stakeholders to look beyond it and embrace new innovations to keep the sector vibrant and competitive. In conclusion, Kenya's remarkable growth in the FinTech sector serves as a beacon of hope for other African countries looking to leverage technology for financial inclusion and economic advancement. By fostering a culture of innovation, strengthening regulatory frameworks, and prioritizing consumer value, Kenya is poised to not only sustain its position as a global FinTech hub but also set new standards for digital financial services on the continent.