There exists huge potential for the financial sector to market their products, research group Twaweza East Africa revealed. A number of Kenyans, the group said, do not have a bank account, mobile money account, insurance or access to loans.
The study, based on citizens’ views on the financial inclusion in Kenya, found out that eight out of 10 Kenyans, which amounts to 84 per cent, are financially included.
However, one in six Kenyans continues to be financially excluded. Some 48 per cent reported having joint or individual accounts while three of 10 use M-Shwari mobile banking and 13 per cent have accounts in Savings and Credit Cooperatives (Saccos).
Comparable data from 2013 show that only 29 per cent of citizens had accounts. In the past five years, 39 per cent of Kenyans had taken a loan from a financial institution.
Those in the wealthiest households are much more likely to borrow money at 49 per cent compared to 18 per cent in the lower bracket. Banks benefitted more from uptake of loans at 25 per cent as compared to Saccos at 17 per cent and 15 per cent from mobile money. Informal borrowing was also reported standing at 31 per cent.
Ownership of an insurance product, pension scheme, shares and a credit card were relatively low with 25 per cent of Kenyans owning a debit card. Among those with insurance, eight out of 10 have health insurance.
The Director of Data and Voice at Twaweza John Mugo said the study proved that there is cause to celebrate the rapidly increasing access to financial services in the country.
“Access to credit and insurance, the ability to send and receive money and safe places to store savings can help to both reduce the vulnerability of the poor and increase their productivity,” said Mugo. The study was done through a high frequency mobile phone survey.
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For more information, Contact
Gallin Wekesa, Financial Advisor- Britam- 0712870447- gallywexa@gmail.com.