Kenya Market Profile

MIX Premium Annnual Briefing
February 21, 2012

2011 - Country Briefing

Kenyan microfinance has shown resiliency despite local droughts and high inflation rates that afflicted the nation in 2008 and 2009. With the Kenyan government and the Central Bank of Kenya emphasizing financial access as a key to modernizing the economy, the sector has been strengthened by progressive policies and innovative approaches to delivering financial services. A large deposit base, along with the existence of well-developed MFIs, have allowed financial and operational expenses to remain relatively low and have led to some of the highest profitability measures in the SSA region. A detailed explanation of growth trends as well as relevant policy measures taken by the government can be found throughout the Kenya Country Briefing:

  • Overview: Innovative forms of microfinance and progressive government policies have helped to make Kenya’s microfinance sector one of the most developed in Sub-Saharan Africa. Leading contributors to this dynamic are M-Pesa’s success in mobile banking, the passing of the Finance Act of 2010 allowing for agent banking, and the development of effective credit bureaus throughout the country.
  • Supply & Demand: A strong culture of savings has meant that MFI outreach to depositors has far outweighed outreach to borrowers, although overall loan portfolio and total deposits have both increased steadily since 2008. High product-line diversification has allowed MFIs to evolve to meet customer needs, although growth has primarily targeted an urban clientele.
  • Funding: Deposits account for nearly 70% of the funding base for the sector, with the savings of microdepositors contributing the majority of these funds. Kenyan microfinance also benefits from the confidence of many international lenders, although the largest national source of microfinance credit is Kenya itself. 
  • Performance: The ability to maintain low financial and operational expense ratios has made Kenyan microfinance fairly profitable with an ROA of over 5% in 2010. High PAR levels do however raise concerns about the riskiness of the overall portfolio, and whether profitability can be sustained over time.

This report is also available for individual purchase.

MIX Premium Barometer
April 08, 2014

2013 - December : Barometer

This forecasting report covers the Kenyan microfinance market through March 31, 2014. The report is based on survey responses from market participants and covers the following:

  • Forecasts are aggregated at the national level with insights by peer group (legal status, regulated, age, etc.)
  • Risk and outreach factors are ranked
  • Individual responses are bucketed into ranges and provided by peer group
  • Featured indicators include: Number of active borrowers, gross loan portfolio, and portfolio-at-risk > 30 day

This report is also available for individual purchase.

MIX Premium Quarterly Update
January 16, 2014

2013 - September : Factsheet

This report provides detailed analysis on the Kenyan market through September 30, 2013. The data for this report is balanced to reduce misinterpretation and covers the following:

  • Analysis of each metric includes a table listing out the top actors as well as graphs segmenting the market by peer group
  • Insights from local market sources including MFIs and networks
  • Featured indicators include: Number of active borrowers, gross loan portfolio, number of depositors, deposits, and portfolio-at-risk > 30 days

This report is also available for individual purchase.

MIX Premium Quarterly Update
December 23, 2013

2013 - June : Factsheet

This report provides detailed analysis on the Kenyan market through June 30, 2013. The data for this report is balanced to reduce misinterpretation and covers the following:

  • Analysis of each metric includes a table listing out the top actors as well as graphs segmenting the market by peer group
  • Insights from local market sources including MFIs and networks
  • Featured indicators include: Number of active borrowers, gross loan portfolio, number of depositors, deposits, and portfolio-at-risk > 30 day

This report is also available for individual purchase.

MIX Premium Barometer
December 06, 2013

2013 - September : Barometer

This forecasting report covers the Kenyan microfinance market through December 31, 2013. The report is based on survey responses from market participants and covers the following:

  • Forecasts are aggregated at the national level with insights by peer group (legal status, regulated, age, etc.)
  • Risk and outreach factors are ranked
  • Individual responses are bucketed into ranges and provided by peer group
  • Featured indicators include: Number of active borrowers, gross loan portfolio, and portfolio-at-risk > 30 day

This report is also available for individual purchase.

MIX Premium Barometer
August 29, 2013

2013 - June : Barometer

23 MFIs representing 51% of the Kenyan market share (excluding Equity Bank) responded to this quarter's Barometer survey. Respondents to this quarter's survey are expecting very strong quarterly growth, especially in loan portfolio volumes. Interestingly, DTMs are expectingly lower quarterly growth through September 30 than their credit-only peers in terms of both borrower levels and loan portfolios, while also expecting higher risk levels.

This report is also available for individual purchase.

MIX Premium Quarterly Update
August 13, 2013

2013 - March : Factsheet

This report provides detailed analysis on number of active borrowers, gross loan portfolio, number of depositors, deposits, and portfolio-at-risk > 30 days through March 31, 2013. MFIs in Kenya experienced growth in both deposits and loans for the first quarter of 2013. Growth rates in number of borrowers and loan portfolios were comparable, while deposits growth nearly doubled growth in number of depositors. Unfortunately, portfolio-at-risk > 30 days also increased for the quarter and is likely attributable to the uncertainty from the March elections.

This report is also available for individual purchase.

MIX Premium Barometer
June 11, 2013

2013 - March : Barometer

Eighteen institutions responded to the survey representing 79% of the market as of FYE 2011, including Equity Bank this quarter. MFIs in Kenya expecting strong growth in both borrowers and loan portfolios in the quarter ending June 30, but expectations for the coming twelve months for loan portfolios are significantly higher. MFIs are also confident in their ability to reduce risk in their own portfolios, but the range between the reported country level average and individual level weighted average belies the increased confidence of larger institutions. Interestingly, the leading factor across institutions for both outreach and risk is reportedly the macroeconomic environment, though the different legal statuses report different factors.If you are a MIX Premium subscriber, be sure to log-in and click on the Forecast tab to read more.

This report is also available for individual purchase.

MIX Premium Barometer
April 16, 2013

2012 - December : Barometer

Kenyan MFIs are projecting strong growth in borrowers relative to previous year (a reflection of previous years of low growth) and comparable growth in GLP. Risk levels are a concern for MFIs. Political and regulatory changes are weighing on the minds of MFIs in terms of impacting both outreach and risk, but they are also concerned about client-indebtedness impacting risk levels.

This report is also available for individual purchase.

MIX Premium Quarterly Update
March 15, 2013

2012 - December : Factsheet

The Kenyan microfinance continues to evolve rapidly around the proliferation of mobile payments. New partnerships continue to push the market forward, the most notable being between Equity Bank and Mastercard who together plan to issue 5 million credit/debit cards in Kenya by the end of 2013. For its part, the government has instituted an excise duty on mobile transactions. The increase in services and utilization of mobile money platforms has unfortunately also led to a rise in crime against mobile money shops. Through the end of the fourth quarter, borrower levels were down while depositor levels were up. Loan and deposit portfolios continue to climb.

This report is also available for individual purchase.

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