Key players in Kenya’s financial technology sector are advocating for increased collaboration between banks and fintech companies to enhance the industry’s growth and resilience.
This call to action was made during the 2024 Private Enterprise Africa Venture Summit, hosted by KPMG, which focused on the future of fintech and tax compliance for African enterprises. The two-day event gathered investors, entrepreneurs, policymakers, and industry leaders, emphasizing collaboration, innovation, and sustainable financing.
Ali Hussein Kassim, Vice President of the Africa Fintech Network for East Africa and an executive board member, highlighted the transformative role of fintech in financial services and the critical need for rigorous tax compliance amid changing regulatory environments. “Policymakers and regulators must collaborate to regulate open banking. It is imperative for fintechs and banks to work together to foster growth in the financial market,” Kassim stated.
Ngina Mutava, Associate Director of the Strathmore Tax Research Center, addressed the challenges of tax compliance, pointing out that while government expenditure may suggest GDP growth, many projects, like the Standard Gauge Railway (SGR), inject funds into the economy without directly contributing to tax revenues. “Our tax base is very small; we need to broaden it,” she emphasized.
The summit featured speakers from various disciplines within the fintech ecosystem, presenting innovative solutions, strategies, and policy recommendations aimed at promoting sustainable financing and investment. Eric Maina, Senior Business Development Manager at Visa, noted the potential of mobile banking and digital wallets to enhance financial inclusion in Africa, particularly among the youth.
Discussions also covered topics such as gender-focused investing, deal structuring, and sustainable financing using local currencies. Emanuel Wanjuu, an investment analyst at Verod-Kepple Africa, stressed the importance of local capital for a deeper understanding of the market dynamics.
This summit occurs amid a notable decline in investment funding for the region. According to Disrupt Africa’s African Tech Startups Funding Report, investments in African startups dropped by approximately 27 percent in 2023, with the number of active investors halving.
KPMG experts are set to delve into these issues and explore strategies for fostering high-impact ventures while shaping the future of funding in Africa. The summit aims to herald a new era of economic opportunity and innovation across the continent, emphasizing impactful ventures and strategic partnerships.
Industry Leaders Advocate for Collaboration Between Banks and Fintechs in Kenya
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