Kenya – Financial Access Study Performed by the Steadman Group.
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Transcript of Kenya – Financial Access Study Performed by the Steadman Group.
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Kenya – Financial Access Study
Performed by the Steadman Group
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Methodology
• Sampling based on the CBS NASSEP IV sampling frame
• Drawn from all 69 districts
• Random selection of cluster, household and individual
• Sample size achieved of 4,218
•Distribution of the samples (individuals aged 16 and over)
Nairobi 438
Central 570
Coast 360
Eastern 690
North Eastern 140
Nyanza 710
Rif t Valley 1,050
Western 460
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Results overview
• Outreach of financial service providers
• Financial access strand
• Usage of savings, credit, money transfer and insurance
• Informal groups
• Technology
• Youth
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Outreach of financial service providers
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Financial Access Strand
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Bank Account Usage by Province
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Financial access bymain source of income
• Most of the banked work:– for a wage in a large
establishment– in their own business
• Most of the unbanked get income by– producing food crops– transfers from family /
friends
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Characteristics of the banked / unbanked
• Majority of the banked: – are male– have secondary
education or higher– own a mobile phone
• Most of the unbanked:– are female .– more likely to have little
education– have no access to a
mobile phone
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Usage of savings products
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Usage of credit products
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Usage of money transfer services
•Transfers within Kenya•Mostly informal using family / friend or matatu
•Transfers outside Kenya•Mostly formal using transfer agencies or a bank account
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Usage of insurance products
*multiple responses were spontaneously mentioned by interviewees
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Informal groups
Typical group activities –•Give one member all monies collected in one round•Raise money for emergencies•Raise money for funerals•Lend money to members when they need it
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Mobile phone usage
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Youth – 16/17 year oldsSource of income
•5% with formal services•2% with indirect access through guardian•One in three earn a living in agriculture
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Analysis of the Data
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Supply:banking services follows formaleconomy…
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Supplybank penetration is driven by thesize of the market
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Informal finance:Formal and informal finance are not substitutes
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Informal finance
Banked and unserved use of informal credit and savings equally
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Financial “Exclusion”Factors:
• Cost / Affordability– Low incomes / cash balances (not worth banking– Access barriers (opening / minimum balances)– Transactions costs (transport, time)
• Availability of Informal (cheaper) alternatives– Shopkeepers / suppliers: credit– Friends, family, savings, credit, insurance, remittances. – Matatu / buses: remittances
• Unavailability (Northeastern)
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Increasing outreach &demand:
• Cost cutting innovations to make affordable banking services commercially viable– Cellular phone banking– Alternatives, low cost outlets, agencies.– Product innovation e.g. over the counter savings products.
• Promoting SACCOs outside formal employment / cash crop agriculture
• Promoting payments / savings oriented MFI’s.