As of November 2022, Kenyan fintechs accounted for 30.2% or 93 out of the 308 tracked tech startups, a Disrupt Africa research lately discovered. As well as, the research findings present that the fintech sub-sector alone accounted for 3,100 or 27% of the 11,462 folks that had been employed by tech startups throughout the identical interval.
Fintechs Fixing Elementary Issues
In line with the findings of a research on Kenya’s startup area, fintech ventures alone accounted for simply over 30% or 93 out of the 308 tracked startups. This determine is sort of thrice greater than that of the closest challengers, specifically agri-tech and e-health, which each accounted for 10.1% of Kenya’s tech startups that had been tracked between January and November 2022.
Nonetheless, as defined in Disrupt Africa’s research report on the Kenyan startup ecosystem, the dominance of fintechs isn’t uncommon.
“Fintech takes the highest spot in most African nations because it solves basic issues for the populace, is an space through which novel tech options are typically nicely acquired and rapidly adopted, in addition to providing engaging returns for traders,” the report stated.
Remittances and Lending Extra Widespread Classes
Moreover accounting for the most important share of tech startups, fintechs additionally employed extra staff (3,100) than different sub-sectors. Agritech and e-commerce are the one different tech sub-sectors that employed greater than a thousand staff.
In the meantime, as proven by the research’s breakdown of the fintechs’ areas of focus, remittances (24%), in addition to the lending and financing (21%) area, seem like the extra widespread classes. In line with the report, a part of the explanation for that is that “these areas cowl lots of the most basic monetary providers which are nonetheless missing for a lot of the inhabitants.” The report added that such classes have been “the jumping-off level for fintech ecosystems continent-wide.”
Regarding the tech startups’ use of blockchain, the research discovered that 12 of the 30 blockchain-based ventures are fintechs. E-health (6) and agri-tech (5) are ranked second and third, respectively.
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