Over the last 10 years, there have been a continued growth in the Microfinance Industry (‘Industry’) and Agusto & Co. estimates that the Kenyan Microfinance Industry (comprising the Microfinance Banks, Credit-Only Microfinance Institutions and Wholesale Microfinance Institutions) as of end of December 2021 had total assets of approximately KES 250 billion. We expect that the industry’s assets will grow by an average of 2% in 2022 driven by the economic recovery and the easing of lending measures by microfinance institutions. Additionally, competition has remained a major force in the growth of the industry and microfinance institutions must develop a set of externally oriented competencies in the areas of market research, competitive advantage analysis, digitization and innovative product offerings to thrive in the face of increasing local and foreign competition.
Key excerpts from the 2022 Kenya Microfinance Industry Report
The 2022 Kenya Microfinance Industry report covers the following: