Financial Education Accompanies Financial Inclusion in Kenya

Topping financial literacy news coming out of Kenya is the finding that financial education continues to be a key element of financial inclusion programs that have driven more Kenyans to gain important access to financial services during the several years.  The latest data from the Central bank of Kenya (CBK) illustrates that roughly 35% of the country’s citizens no have a formal bank account with a financial institution, as compared to only 23% four year ago.

During the same time period, approximatelyt 28% of Kenyans wither contacted informal financial services providers or used other forms of formal financial services.   Governor Njuguna Ndung’u has been noting that poor individuals and families in Kenya have low levels of capital accumulation and, therefore, they are challenged in accessing financial products and services.  Moreover, the region suffers from physical barriers and distance to robust financial markets, as well as very strict requirements for opening and maintaining bank accounts.

Notwithstanding these challenges, the government of Kenya remains highly committed to financial inclusion and, based on the recent trend, we should expect financial literacy to continue to be a central component of these efforts, which should bode well for the financial literacy movement in Kenya and neighboring regions going forward.