Rising popularity of mobile cash services raises access to 83 per cent.
This is according to the latest Financial Access Household Survey that attributes the increase in financial access to digital finance driven by mobile banking services.
The rise reported in the 2019 Financial Access (FinAccess) Household Survey, is from 75 per cent in 2016 and 27 per cent in 2006, leaving only 11 per cent with no access to any formal service.
Central Bank of Kenya Governor Patrick Njoroge is however worried about the debt stress that Kenyans were putting themselves into due to an increasing appetite for easily accessible mobile loans through digital apps.
The Financial Access Household Survey further indicates that over 70 per cent of Kenyans are saving with more metropolitan cities like Nairobi and Mombasa reaching full inclusion at 96 and 94 per cent respectively as Central Kenya saw a decline in financial inclusion by 2 per cent.
According to the report, despite the deepening of financial inclusion, non-financial solutions still play a role in meeting day to day goals.
The Market Overview of Mobile Loans in Kenya report by Credit Info showed that 74.5 per cent of the borrowers had between 2-6 mobile loans at any given time.
Men of age 41-50 borrowed most, say the report. Only 34.5 per cent of loans were issued to women, with 31-40 age group leading the pack.
Informal Finance Grows
Informal finance still remains strong even among Kenyans with access to formal services.Over 60 per cent of Kenyans still use informal solutions such as chamas, cash savings at home and borrowing from friends or shopkeepers, the survey says.