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In the year By November 2022, Kenyan fintech will account for 30.2% or 93 of the 308 tech startups tracked, a Disrupt Africa study recently found. Additionally, the survey results show that the fintech subsector alone accounted for 3,100 or 27% of the 11,462 people employed by tech startups.
Solving the fundamental problems of fintech
According to a survey of Kenya’s startup space, fintech ventures alone account for more than 30% of the 308 startups, or just 93. This figure is three times higher than that of its nearest competitors, Agri-Tech and e-Health, which accounted for 10.1% of Kenyan tech startups tracked between January and November 2022.
However, fintech dominance is not unusual, as discussed in a Disrupt Africa research report on Kenya’s startup ecosystem.
“Fintech is at the fore in most African countries when it comes to solving people’s fundamental problems, an environment where novel technological solutions are well-received and rapidly adopted, providing attractive returns to investors,” the report said.
Remittances and loans are more popular categories
In addition to accounting for the largest share of technology startups, fintech employs more workers (3,100) than any other subsector. Agritech and e-commerce are other tech sub-sectors that have employed more than a thousand workers.
Meanwhile, a breakdown of fintech focus areas in the survey shows that remittances (24%), as well as the credit and finance (21%) space, appear to be the most popular categories. According to the report, one reason for this is that “these areas cover many basic financial services that are still lacking for the majority of the population.” The report added that such categories were a “jumping point for fintech ecosystems on a continental scale”.
Regarding the use of blockchain by tech startups, the survey found that 12 out of 30 blockchain-based ventures are fintechs. E-Health (6) and Agri-Tech (5) are ranked second and third respectively.
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