For fintech startups expanding to Kenya, nothing is more difficult than getting an operating licence.
A payment service provider (PSP) licence may take up to two years due to approval delays, forcing startups to use workarounds such as partnerships with telcos, banks and mobile money providers.
We dont enable services that we cant do without a licence, but what we do in Kenya is connect licenced parties, Rachael Balsham, East and Southern Africa MD at fintech Onafriq told TechCabal at last weeks Africa Fintech Summit in Nairobi.
Safaricoms M-PESA is licenced to run mobile money services, and we connect them to other licenced parties. Onafriq allows businesses to send and receive money across 40 African countries but is only licenced in 12, excluding Kenya.
The slow pace of licencing in Kenya is a major roadblock for fintechs looking to set shop in the East African country.
