Slide Deck

Low-Income Financial Services Market Sizing and Fintech Assessment: Kenya Country Report

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The slide deck is a supplement to the CGAP Blog "Can Kenya’s Fintech Boom Address the MSE Finance Gap?" (July 2022).

This slide deck presents the findings of research commissioned by CGAP as part of its work with Simon, Kucher & Partners (SKP) to estimate the size of the medium and small enterprise (MSE) and low-income credit markets in Kenya and to assess the potential of fintech firms to meet the needs of those markets. SKP estimated the combined value of MSE and low-income consumer credit disbursed in Kenya in 2021 to be about $40 billion. Key insights from the research include:

  • While there are demand-side barriers affecting uptake – such as preference for informal sources of finance, low digital capacity, lack of trust and gender norms – there are also important supply-side constraints like poor customer journeys, perceptions of aggressive collection practices, high user fees, and lack of supporting solutions like earning management.
  • Fintechs have historically focused on the provision of nano credit to consumers for consumption purposes rather than business needs due to the quick growth and profitability they tend to experience. But helping MSEs digitize and offering more holistic financial services will move them closer to accessing DFS that best serve their businesses.
  • Changes in the regulatory landscape should provide fintech customers with confidence and rebuild their trust in fintech offerings. In addition, an improved awareness among fintechs of MSEs as a profitable and differentiated segment with unique financial needs should help create room for the development of improved digital credit and suitable DFS for MSEs.


This work was funded in whole or in part by CGAP. Unlike CGAP's official publications, it has not been peer reviewed or edited by CGAP, and any conclusions or viewpoints expressed are those of the authors, and they may or may not reflect the views of CGAP staff.

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