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First published 15 September, 2024
Whats the future of Kenyan fintechs?M-Pesa, Kenyas dominant mobile payment platform owned by Safaricom, processed a staggering 20 billion transactions in 2023, accounting for about 60% of the countrys GDP.
While M-Pesa has revolutionised digital banking and payment services, its dominance in the market has reduced the appetite for fintech startups. Compared to its peers, Kenyan fintechs have not set new digital payment standards, as in Nigeria, Egypt, and South Africa. Some might argue that the countrys regulatory environment has slowed innovations in the financial services sector, but its too hard to ignore M-Pesas winning streak.
What is the future of fintech startups in Kenya? A report by Stears, a Nigerian market intelligence firm showed that Kenyan fintechs secured 8% of the total investments in the sector between 2019 and 2023, trailing Nigeria (39%), South Africa (20%) and Egypt (16%).
