The deepest capital markets in East Africa
In January 2018, the Kenya financial market was ranked 5th in Africa (2018 Africa Financial Markets Index). The Nairobi Stock Exchange includes more than sixty companies.
The bond market is dominated by trading in government bonds. Recently, the Government of Kenya launched a mobile money platform government bond (M-Akiba) to encourage local Kenyans to buy financial products through their mobile phones.
To attract investors in the financial sector, the government has put in place a set of non-fiscal and fiscal incentives.
Main features of the Kenyan banking sector
The money and banking sector in Kenya is relatively well-developed.
Main data source: Central Bank of Kenya, Bank Supervision Annual Report (2017)
Opportunities
There are a number of opportunities in the financial industry, including in the following sectors:
| A financial regional hub | Financing | ICT enabled financial services | IT infrastructure |
|---|---|---|---|
| The upcoming launch of an international financial centre will significantly increase the international exposure of Nairobi. It will also contribute to attract new foreign financial firms and boost capital flows | There is a strong demand for innovative debt and equity instruments for SMEs. Thousands of SMEs still lack access to medium and long term finance | The fast adoption of new technologies creates room for development of compatible ICT enabled services | There is an increasing demand for solutions like cyber security, monitoring and record keeping |