Industry leaders in Kenya’s financial technology sector are advocating for increased collaboration between banks and fintech firms to bolster the industry. This call was made during the 2024 Private Enterprise Africa Venture Summit, hosted by KPMG, a leading audit, tax, and advisory services firm.
The two-day event, which gathered investors, entrepreneurs, policymakers, and industry leaders, focused on fostering collaboration, promoting innovation, and ensuring sustainable financing within the fintech space. The discussions highlighted the future of fintech and the importance of tax compliance for African enterprises.
Ali Hussein Kassim, Vice President for East Africa at Africa Fintech Network and executive board member, emphasized the transformative impact of fintech on financial services. He stressed the necessity of maintaining stringent tax compliance in an evolving regulatory environment. “Policy makers and regulators must come together to regulate open banking. It is high time that fintech and banks collaborate for the growth of the financial market,” Kassim stated.
Ngina Mutava, Associate Director at the Strathmore Tax Research Center, addressed the challenges of tax compliance, pointing out that government expenditure is often misconstrued as GDP growth. She highlighted the need to expand the tax base, noting, “Our tax base is very small; we need to widen the tax bases.”
The summit featured speakers from various disciplines within the fintech ecosystem who presented innovative solutions, strategies, and policy recommendations aimed at promoting sustainable financing and investment. Eric Maina, Senior Business Development Manager at Visa, discussed the transformative potential of mobile banking and digital payments in enhancing financial inclusion, particularly among the youth.
Topics such as gender lens investing, impact investing, deal structuring, and sustainable financing using local currencies were also explored. Investment analyst Emanuel Wanjuu from Verod-Kepple Africa highlighted the importance of local capital in understanding the market and sustaining growth without relying heavily on external exits.
The summit occurred amidst a notable decline in investor funding for African startups. Disrupt Africa’s African Tech Startups Funding Report revealed a 27 percent drop in investment in 2023, with the number of investors halving. KPMG experts are set to delve into these challenges, aiming to foster high-impact ventures and shape the future of funding in Africa.
By fostering impactful ventures and strategic partnerships, the summit aims to usher in a new era of economic opportunity and innovation across the continent.