Fintechs Face Delays in Kenyan Expansion Due to Lengthy Licensing Procedures
- Fintech startups struggle to obtain operating licenses in Kenya.
- A Payment Service Provider (PSP) license can take up to two years due to approval delays.
- Onafriq connects licensed entities like Safaricom’s M-PESA for money transfers.
The lengthy licensing process in Kenya poses a significant barrier to fintech innovation and competition. While the proposed reforms and license passporting could provide relief, the lack of immediate action and the existing dominance of traditional players suggest that substantial changes are necessary for a more vibrant fintech ecosystem.
