Kenya’s financial system has long been viewed as one of Africa’s most dynamic, but the next 30 years may reveal an even more consequential role.
The continent’s growth story is shifting, and the question is no longer whether Africa can attract capital, but whether African institutions can mobilise and deploy that capital themselves. Kenya is emerging as a key player in that transition.
From its mobile money rails and agency banking infrastructure – which have expanded financial access – to innovative fund structures and private market intermediation, Kenyan firms have demonstrated they can prototype solutions quickly and at scale.
This has been made better with the introduction of the Collective Investment Schemes Regulations in 2023, whose goal is to, among other things, promote transparency and accountability in Kenya’s capital markets.
The speed at which new products are attracting capital is a confirmation that investors are ready for more diversified, professionally managed vehicles.
Multi-asset vehicles broaden investor choice, provide liquidity, and allow for better risk-adjusted outcomes.
They absorb capital that would otherwise remain in narrow traditional assets and channel it toward productive, long-term opportunities. They are becoming structural building blocks for deeper capital markets.
The ability to build and adapt locally matters now more than ever. Africa’s next phase of development will depend on home-grown capabilities, including mobilising long-term domestic savings into infrastructure, deepening private capital markets, and creating regional investment pools that can move money efficiently across borders.
Kenya can take advantage of this by strengthening systems around its fintech, savings, and investment ecosystem so that capital is cheaper and more accessible.
For the last few years, Kenya has embarked on structural shifts that demonstrate its readiness to lead. First, institutional savings have matured.
Pension schemes, collective investment vehicles, and insurance asset pools are no longer passive holders of government securities. They are active allocators that understand risk, demand better products, and can fund long-term assets.
Second, the technology infrastructure – including mobile money, interoperable payment rails, and digitised operations – has created a foundation on which modern capital markets can scale.
Third, regulators have become more engaged. While there is still work to do, the openness to alternative products, new fund structures, and tech-enabled investment solutions signals a shift from defensive supervision to constructive enablement.
Together, these developments mean Kenya is no longer reacting to global trends; it is shaping its path.
The institutions most likely to dominate Africa’s capital markets in the future will be those that combine innovation with strong governance and regional ambition.
Whether they sit in investment banking, asset management, pension administration, insurance, or fintech, the winners will share three traits: a deep understanding of African clients, the discipline to build strong systems before scaling, and the patience to invest in multi-market expansion.
For Kenyan firms to scale regionally, they need cross-market talent, patient capital, and strong partnerships. It’s not enough to have excellent products; scaling requires local allies, predictable licensing pathways, and an understanding of how trustees and regulators behave in each market.
Tax incentives and harmonised regulations could accelerate this momentum, but strategic partnerships remain key.
Regulatory and infrastructure reforms will determine how fast Kenya moves from promise to dominance.
To unlock growth, there should be unified regional custody protocols to ease cross-border investment; digitised, accelerated approval tracks for debt, REITs, and alternative vehicles; and clear rules on FX repatriation and tax treatment for regional funds.
These changes will reduce friction, lower structuring costs, and shorten time-to-market – all of which are essential for a competitive regional hub.
Nickay Wangunyu is the Executive Director of Strategy and Operations, Standard Investment Bank
