Fintechs accounted for over 30% of Kenyan tech startups tracked in 2022 study – Fintech Bitcoin News

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In November 2022, Kenyan fintechs accounted for 30.2% or 93 of the 308 tech startups tracked, a study by Disrupt Africa recently revealed. Additionally, the study results show that the fintech sub-sector alone accounted for 3,100 or 27% of the 11,462 people who were employed by tech startups during the same period.

Fintech solves fundamental problems

According to the findings of a study on the startup space in Kenya, fintech companies alone accounted for just over 30% or 93 of the 308 startups tracked. This figure is almost three times that of the closest challengers, namely agri-tech and e-health, which both accounted for 10.1% of Kenyan tech startups that were tracked between January and November 2022. .

Source: Disrupt Africa

However, as explained in Disrupt Africas study report on the Kenyan startup ecosystem, the dominance of fintechs is not unusual.

“Fintech ranks first in most African countries because it solves fundamental problems for the people, is an area where new technological solutions tend to be well received and quickly adopted, while offering attractive returns for investors,” the report said.

Remittances and Loans Most Popular Categories

In addition to accounting for the largest share of tech startups, fintechs also employed more workers (3,100) than other subsectors. Agritech and e-commerce are the only other tech subsectors that employed more than a thousand workers.

Source: Disrupt Africa

Meanwhile, as the breakdown of studies on fintech focus areas shows, remittances (24%), along with the lending and funding space (21%), appear to be the most popular categories. popular. According to the report, this is partly because “these areas cover many of the most basic financial services that are still lacking to a large part of the population”. The report adds that these categories were “the starting point for fintech ecosystems continent-wide”.

Regarding the use of blockchain by tech startups, the study found that 12 out of 30 blockchain-based companies are fintechs. E-health (6) and agri-tech (5) rank second and third respectively.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.

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