Kenya’s financial inclusion hit 84 percent amid policy reforms, digitization: report

NAIROBI, Dec. 3 (Xinhua) — The population of Kenyans who had access to formal financial services rose from 83.7 percent in 2021 to 84.8 percent in 2024, driven by macroeconomic policy reforms and digitization, according to a report launched Tuesday in the Kenyan capital of Nairobi.
Compiled by the Central Bank of Kenya, Kenya National Bureau of Statistics, and Financial Sector Deepening Kenya, the report, titled 2024 FinAccess Household Survey, says Kenya ranks among five African countries that have made strides in enhancing access to financial products to the general populace. It measured financial inclusion based on four dimensions, including access, usage, quality and impact.
Based on countrywide data collection targeting 28,275 households, the report, the seventh of the series, observes that although 9.9 percent of Kenyan adults remain financially excluded, the majority have opened brick-and-mortar bank accounts besides taking up digital payment services at a higher rate.
“Overall, the survey findings indicate that Kenyans continue to access a diverse range of services, with a notable increase in the use of innovative digital solutions like ‘buy now pay later,’ alongside traditional services such as brick-and-mortar banks, savings and credit schemes,” the report says.
John Mbadi, cabinet secretary for the National Treasury and Economic Planning, said fiscal and regulatory incentives and the adoption of new technologies and innovations have deepened financial inclusion in Kenya, fostering growth.
According to Mbadi, the financial services sector contributes about 7.8 percent to the country’s gross domestic product (GDP) and its growth will be dependent on a stable macroeconomic climate to ensure citizens have access to affordable credit.
Conducted every three years to track changes in the financial landscape driven by technology, policy and demographic shifts, the 2024 survey highlighted positive trends such as a high uptake of green finance, a doubling of mobile money usage and a narrowing gender gap in financial inclusion. The survey called for expanding access to financial services among the rural youth, urgent action on debt distress among borrowers, improving their financial literacy and enhancing consumer protection.
Wycliffe Oparanya, cabinet secretary for Cooperatives, Micro, Small and Medium Enterprises (MSMEs) Development, said the government is championing financial inclusivity as a means to achieve equitable growth and social transformation. ■