Mobile, Internet boosting Kenya's banking sector development, new report shows
The Cytonn Banking Report has revealed that the banking sector in Kenya experienced growth in Q1 2016.In the first quarter of the year, Kenya's banking sector experienced growth in assets, deposits, profitability and products offering thanks to mobile banking services, according to a new report.
"The growth in Kenya's banking sector can be attributed to increased use of alternative channels of distribution such as agency, mobile and internet banking," said Maurice Oduor, Investment Manager, quoted by CIO East Africa.
aggregate gross loans and advances grew by 14.6 per cent year-on-year to reach Sh1.7 trillion (€14.9 billion) in March 2016, while deposits grew by 11.5 per cent to Sh2 trillion over the same period.
Since 2010, deposits have grown at a compound annual growth rate (CAGR) of 15.1 per cent, with loans and advances having grown faster than deposit at a CAGR of 18.7 per cent.
Mobile money is popular in Kenya. Transactions valued at 87 per cent of the country’s GDP passed through mobile banking service M-Pesa alone in 2014. There are 26 million mobile money customers in Kenya.