Enhancing financial inclusion in Kenya: MSC and IFC’s digital credit analysis

• Dec 28, 2023
• 1 min

MSC and IFC (International Finance Corporation) conducted a global landscape analysis of digital credit, which included Kenya. The analysis sought to help Kenyan financial institutions enhance digital credit’s use and improve data collection, management, and analytics capabilities.

MSC and IFC (International Finance Corporation) conducted a global landscape analysis of digital credit, which included Kenya. The analysis intended to help Kenyan financial institutions enhance digital credit’s use through alternative credit scoring and improved data collection, management, and analytics capabilities. We started with a desk and primary research to understand the global digital credit ecosystem, its policies, regulations, and users. We also analyzed supply- and demand-side interactions.

The report included an in-depth description of the digital credit ecosystem, trends in digital technologies, data-driven credit scoring methodologies, and the impact of digital credit on financial inclusion. The report also identified emerging best practices, gaps, and opportunities for the use of data-driven credit scoring methodologies. It also provided recommendations on ways to enhance the digital credit ecosystem.

The Central Bank of Kenya has since developed Digital Credit Providers’ (DCP) guidelines and licensing for non-bank financial institutions.

The World Bank Group – IFC commissioned the project.