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Tuesday, 14 November 2017 12:30

FINTECH in Kenya Featured

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The influence of FinTech in Kenya started to be notable in 2016 after the Capital Markets Authority of Kenya (CMA) and the Australian Securities and Investments Commission (ASIC) signed a Co-operation Agreement to support FinTech. The agreement aimed at promoting innovation in financial services for the respective markets. The agreement was signed in the margins of the Board meeting of the International Organization of Securities Commissions (IOSCO), which was held in Hong Kong during the same year. After the agreement to support Fintech in the country, a framework for establishing a corporation between the CMA and ASIC was created, as a way of expanding the space and opportunity for innovations in financial services. The parties agreed to share information in their respective markets, which included new market trends and regulatory aspects of growth in innovation.

These factors among others have led to the massive increase in the influence of Fintech in the Kenyan market.  The Fintech Group has been committed to facilitating innovation in financial services, and this has leveraged Kenya’s positioning in the region as a center for innovation. The group has been aiming at helping companies to assess the lessons learned and in comparing strategies to balance change and regulation with peer regulators.

FinTech Companies in Kenya

Currently, there are over 38 companies in Kenya that belong to the FinTech Group. These include Kocela, EastPesa, Cellulant, Alternative Circle Limited, BitPesa, PesaPal, Kopo Kopo, BitSoko, ImpalaPay, Loniwa, Kenya Commercial Bank Group, among many others. Even though FinTech companies in the U.S stand out as the center of attention when it comes to the most funds raised in the group, two firms from Kenya were among the top ten non-US companies that built the most significant amount of funding in 2015. These include Kopo Kopo and BitPesa. Kenyan Kopo Kopo offers SaaS products that have enabled over 30 million SMEs in emerging markets to indulge in the accepting, processing successfully, and managing of mobile money payments, and raised $2.1 million its first series from Kenya Khosla Impact, Bamboo Finance, Javelin Venture Partners, and Venture Lab. Kenya BitPesa has enabled its consumers and businesses in sending payments to and from Kenya, Uganda, Nigeria, and Tanzania using Bitcoins. BitPesa was able to raise an aggregate amount of $1.1 million in 2015.

Leading Kenyan FinTech Startups

Pezesha and Pula stand out as among the leading Fintech startup companies in the country. The two companies were among the ones that were selected by the Digital Financial Services Lab (DFS) as receipts of a $250,000 investment. The Digital Financial Services Lab (DFS) is an early-stage incubator supporting high potential entrepreneurs to grow, refine and launch Fintech businesses in developing countries. Pezesha is an African peer-to-business marketplace for microlending. The startup uses analytics in matching lenders with creditworthy and low-income micro businesses and offers small businesses access to credit while also generating returns to the lenders. For Pula, it is an ensuring company that implements data-driven agricultural insurance. These are but examples of the many Fintech companies in Kenya assisting hundreds of thousands of individuals and SMEs in the country.

Read 195 times Last modified on Tuesday, 28 November 2017 15:10