Report claims financial tech to play massive role in Kenya’s 2019 economic growth

According to the latest Economic Insight report released by the Institute of Chartered in England and Wales, financial technology is likely to play a huge role in Kenya's economic growth in 2019.

The report released by the Institute of Chartered in England and Wales states the financial technology is going to have more impact on the Kenyan economy than other traditional economic drivers, such as agriculture which is likely to be affected by the delayed onset of the long rains season in Kenya. The East African country Kenya is at the forefront of this growth in the financial technology sector, with the value of mobile money transactions in the country now equivalent to 47 per cent of the Gross Domestic Product, as reported by KBC Channel's Kenya's Watching.

The report further discusses how the development and proliferation of new innovations in mobile technology have allowed Kenya to augment financial penetration beyond what would have traditionally been possible at this stage of the country's development. "Widespread mobile money usage has helped to smooth consumption, reduce poverty and boost economic growth in Kenya," Michael Armstrong, the Regional Director for the Middle East, Africa and South Asia for Institute of Chartered in England and Wales.

The ICT sector now accounts for 5 percent of Kenya's GDP and this is further reinforced by the presence of global tech firms Google, Microsoft, IBM and Samsung, according to Michael Armstrong. The majority of African countries have a positive economic outlook this year, largely due to the positive performance of traditional sectors. African countries like Rwanda, Ethiopia and Uganda are likely to record a real GDP rise of 6 percent supported by infrastructure investment and the expansion of financial services and telecoms services, KBC Channel's Kenya's Watching noted.

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