Originally published: Sept 5, 2008
Source: Business Daily
In possibly the most rapid take-off in the provision of financial services the world has ever seen, the number of Kenyans with bank and savings accounts tripled last year, from 3.3 million to 10.1 million. Banking industry players attribute the growth, which took place in the last 18 months, to aggressive marketing of credit, greater availability of banking facilities and the introduction of a series of new products targeting low-income groups. As a result, 27 per cent of Kenyans now hold accounts compared with nine per cent a year ago, according to the Central Bank.
Ongoing sector reforms such as enactment of the Microfinance Act are expected to usher in more players, increase competitive pressure and broaden the range of financial services to the un-banked. “Microfinance plays a key role in increasing access to financial services thus empowering households to improve their welfare and manage risks,” says CBK.