Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 1, 2023 erstellt
Description:
Technology has been hailed as a game changer in the provision of various financial products. This is due to the emergence of firms adopting technology to provide tailored financial services, hence the word ‘fintech’. The rise of such firms in Kenya has led to increased financial inclusion among consumers as they are accommodating the underserved and unbanked majority, who lack access to, in the most common terms, a bank account. This has been catalyzed by the high rate of mobile phone penetration and access to affordable internet services coupled with the success experienced by M-PESA. M-PESA is a mobile money payment platform that has enabled easier and more convenient money transactions for consumers, without having to open a bank account, and travelling to a physical bank to deposit money. Due to the revolutionary nature of technology, various fintech firms have been launched yet are not covered within the purview of any regulator’s mandate. Their operations, therefore, continue to remain unclear, and their conduct in the market remains unsupervised. This has jeopardized the interests and rights of consumers, hence a need to put in place regulations that protect the interests of consumers while ensuring that the said regulations are proportionate to ensure that innovation is not stifled. It is a well-established fact that financial innovation is critical for financial inclusion and for the realization of Sustainable Development Goals (SDGs). Relevant regulators ought to ensure that the regulations ensure consumer protection and financial stability. To this end, this article seeks to look at the penetration of Fintech in Kenya, the potential of Fintech firms in the realization of SDGs, the various regulatory frameworks that Kenya has adopted, and assess whether these approaches are fit for purpose with regard to consumer protection. It shall further suggest recommendations in the form of a conclusion on the same