- Kiambua County leads in Financial Inclusion at 94%
- West Pokot has the lowest financial inclusion rate at 48.5%, according to the Kenya National Bureau of Statistics.
Kenya has made huge strides in financial inclusion compared to the previous decades. The number of households and persons with bank accounts is somewhat double due to the year-to-year paltry employment increment. The formation of the devolved units more than a decade ago has also played a critical role in enhancing financial accessibility.
Kenya boasts as one of the leading fintech hubs, not only in Africa but also poised to become a global innovation center for financial technology. Kenya’s fintech industry has ballooned to more than 100 fintech companies so far, accounting for 15% of fintech startups in Africa.
Perhaps devolution was one of the golden opportunities that ever happened in Kenya—decentralizing accessibility to financial services, job creation, increased cash flow in several counties, and enhanced government service accessibility to the remote community.
Since it’s initiation in 2013, devolved units have received trillions of Kenyan shillings in disbursement from the national government. County governments have also been collecting billions of shillings from their own sources of revenue, which is as a result of increased business operations and investment opportunities booming at the county levels.
Founded in 2007, M-Pesa has revolutionized financial services in Kenya, supporting small businesses and millions of Kenyans who’ve experienced the ease of digital transactions over carrying cash. M-Pesa is reportedly processing 4,000 transactions per second daily, according to Safaricom CEO Peter Ndegwa. This alone has made M-Pesa a global benchmark for financial inclusion.
The government has implemented a set of policies aimed at enhancing financial inclusion. Hustler Fund is the latest digital microfinance initiative launched by the government of Kenya to improve financial accessibility for all Kenyans, regardless of their status. Two years into its launch, the government has disbursed more than Ksh. 60 billion to nearly 25 million Kenyans.
A recent survey conducted by the Central Bank of Kenya, in conjunction with other partners aimed at providing insights into the state of financial inclusion, focusing on access, usage quality, and impact of financial services, indicates a notable improvement. The findings disclosed that the usage of Savings and Credit Cooperative Organizations (SACCOS) increased from 9.6% in 2021 to 11.7% in 2024.
The 2024 FinAccess Household Survey conducted by the Kenya National Bureau of Statistics (KNBS) shows that Kiambu County leads by a staggering 94% of its population with well-informed services, high literacy levels, and higher income earners. Nairobi City and Kirinyaga counties are 2nd and 3rd with 93.7% and 92.8%, respectively.
