The rise is from 75 percent in 2016 and 27 per cent in 2006, leaving only 11 percent with no access to any formal financial service.
This has been attributed the increase to growth in mobile money, government initiatives and developments in ICT.
Mobile money services has increased the proportion of Kenyans accessing financial services to 82.9 per cent, showing the significance of services such as M-Pesa and Airtel money in the economy.
The rise, contained in the 2019 Financial Access (FinAccess) Household survey, is from 75 percent in 2016 and 27 per cent in 2006, leaving only 11 percent with no access to any formal financial service.
Central Bank of Kenya (CBK) governor Patrick Njoroge Wednesday attributed the increase to growth in mobile money, government initiatives and developments in ICT.
“The significant reduction in the proportion of the adult population totally excluded from financial services and products vindicates the policies, strategies and reforms undertaken by the government as well as widespread adoption of digital technology and innovations by financial sector players,” said Dr Njoroge.
According to the report, use of mobile money, mobile banking and digital applications has risen substantially. Airtel Kenya CEO Prasanta Sarma says the trend offers new opportunities.
“The way mobile money is growing is a big opportunity for us to continue in the inclusion agenda as we serve new needs of customers,” he said.
Financial inclusion
Nairobi and Mombasa top in financial inclusion at 96 per cent and 94 per cent respectively followed by central Rift Valley region (88 per cent) and Central at 85 per cent. North Rift valley has least inclusion at 57 per cent.
Compared to 2016 inclusion, fastest rise was in Western and Coastal regions at 13 percentage points. Central is the only region where financial inclusion dropped (down by two percentage points).
Despite the progress, the study by CBK, Financial Sector Deepening (FSD) Kenya and Kenya National Bureau of Statistics notes that affordability and consumer protection issues remain barriers to access.
“Many Kenyans have formal accounts in various forms but these accounts are rarely used because they are not solving real day-to-day problems for many households, smaller and micro scale businesses and farmers,” said the study.
Informal finance still remains strong even among Kenyans with access to formal services. Over 60 per cent of Kenya still use informal solutions such as chamas, cash savings at home and borrowing from friends or shopkeeper, according to the survey.
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Note: The results are not exact but very close to the actual.
