In 2022, FinTechs made up over 30 % of the Kenyan Tech startups persecuted-study-FinTech

In November 2022, Kenyan FinTechs made 30.2 % or 93 of the 308 pursued tech startups, as a study recently found by Disrupt Africa showed. In addition, the study results show that the fintech section sector alone made 3,100 or 27 % of the 11,462 employees who were employed in the same period at Tech startups.

fintechs solve fundamental problems

according to Results FinTech ventures alone more than 30 % or 93 of the 308 startups recorded. This number is almost three times as high as that of the next challengers, namely agricultural technology and e-health, both of which made up 10.1 % of the tech startups of Kenya collected between January and November 2022.

As explained in the study report by Disrupt Africa as a Kenyan startup ecosystem, the dominance of fintechs is not unusual.

"FinTech takes first place in most African countries, since it solves fundamental problems for the population, an area in which new technical solutions are usually well received and quickly accepted and offer attractive returns for investors," the report says.

transfers and lending categories

FinTech not only make the largest proportion of tech startups, but also employ more employees (3,100) than other sub-sectors. Agritech and e-commerce are the only other tech sub-sectors that employ more than a thousand workers.

As the breakdown of the focus areas of the FinTechs shows in the study, transfers (24 %) and the credit and financing area (21 %) seem to be the most popular categories. According to the report, this is partially due to the fact that "these areas cover many of the most fundamental financial services that are still missing to a large part of the population". The report added that such categories were "the starting point for fintech ecosystems all over the continent"

In terms of the use of blockchain through tech startups, the study showed that 12 of the 30 blockchain-based companies are FinTechs. In places second and three are e-health (6) and Agri-Tech (5).

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Terence Zimwara

Terence Zimwara is an award -winning journalist, author and writer from Zimbabwe. He wrote in detail about the economic problems of some African countries and how digital currencies Africans can offer an escape route.

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