Seamless Xtra’s Ellise Philips interviews Brenda Mbathi, Vice Chair | Kenya Private Sector Alliance (KEPSA).

 

As the leading voice of Kenya’s private sector, KEPSA plays a pivotal role in shaping policies, fostering collaboration between businesses and the government, and driving the country’s economic growth. 

Brenda brings invaluable insights into how Kenya’s private sector is contributing to East Africa’s digital economy and financial inclusion agenda. From innovative fintech solutions to policy advocacy, KEPSA is at the forefront of creating a sustainable, inclusive, and tech-driven economic landscape. 

 

Driving East Africa’s Digital and Financial Future

Digital Inclusion and Financial Inclusion 

Digital Inclusion as a Catalyst:

1.Kenya is recognized as a leader in digital innovation, especially in mobile payments. How does KEPSA envision leveraging digital tools to include more rural and underserved populations in the formal economy? 

KEPSA recognizes that digital inclusion is essential for sustainable economic growth. We are actively advocating for policies that promote digital literacy, affordable internet access, and mobile banking expansion into rural areas. Collaborations with fintech companies, telcos, and local government initiatives are key to ensuring that even the most remote communities have access to digital financial services. 

 

2.What role do you see partnerships between private entities, like fintechs, and government initiatives playing in bridging the digital divide in East Africa? 

Partnerships between private fintech firms and government entities are essential to fostering financial inclusion. By working together, they can create sustainable frameworks for digital payments, develop infrastructure for mobile connectivity, and establish regulatory frameworks that encourage innovation while ensuring consumer protection. Public-private partnerships (PPPs) have been crucial in rolling out mobile payment systems and digital mechanisms. 

 

Financial Inclusion for Growth:

3.Financial inclusion has grown significantly in Kenya, yet challenges remain for SACCOs and small businesses. How can KEPSA help scale up support for these entities? 

KEPSA is focused on advocating for policies that support micro, small, and medium enterprises (MSMEs). KEPSA advocates for financial institutions to introduce tailored financial products for SACCOs and small businesses, ensuring they have access to affordable credit and digital payment solutions. Additionally, capacity-building programs help small businesses improve financial literacy and digital adoption. 

 

4.What are some strategies that can make financial products, such as Buy Now, Pay Later (BNPL) and microloans, more accessible to Kenyans without compromising affordability and transparency? 

Transparency and responsible lending practices must be at the core of these financial products. KEPSA supports the development of robust regulatory guidelines to prevent predatory lending while promoting consumer awareness. Encouraging partnerships between financial institutions and fintechs to leverage AI-driven credit scoring models can help assess creditworthiness more accurately, expanding access while minimizing risk. 

 

Policy Insights and Advocacy 

Regulatory Challenges in Fintech:

5.Fintech innovation often outpaces regulatory frameworks. What are the key challenges KEPSA observes in aligning policy and innovation? 

The primary challenge is balancing innovation with consumer protection. Many fintech solutions emerge rapidly, and regulations must be flexible yet comprehensive. KEPSA collaborates with stakeholders with the aim of looking to establish frameworks that allow innovation to flourish while mitigating risks related to data privacy, cybersecurity, and financial fraud.  

 

6.How can KEPSA support policymakers in crafting regulations that encourage innovation while ensuring consumer protection, especially in areas like eKYC, open finance, and cybersecurity? 

KEPSA facilitates dialogue between the private sector and stakeholders to ensure that emerging financial technologies comply with best practices. By advocating for sandboxes and regulatory pilot programs, we advocate for innovators to test solutions within controlled environments before full deployment. 

 

Collaborating for a Cashless Kenya 

7.Kenya has been a global leader in the move toward cashless transactions. What lessons can the region learn from this, and how does KEPSA advocate for policies that enhance this trend further across East Africa? 

Kenya’s success in cashless payments, mainly driven by M-Pesa, highlights the importance of interoperability and widespread adoption. KEPSA advocates for regional integration of payment systems across East Africa to enhance cross-border transactions and reduce reliance on cash. Policies that incentivize digital transactions are also critical. 

 

The Role of Technology in Financial Inclusion 

Tech-Driven Inclusion:

8.Mobile money platforms like M-Pesa have revolutionized financial inclusion in Kenya. What emerging technologies—like AI, blockchain, or IoT—do you see shaping the next phase of East Africa’s digital economy? 

AI is revolutionizing credit scoring and fraud detection, blockchain is enhancing transparency in financial transactions, and IoT is enabling smart agriculture financing solutions. These technologies will drive the next evolution of financial inclusion in East Africa. 

 

9.How does KEPSA encourage the private sector to innovate while addressing cybersecurity and financial crime risks? 

KEPSA promotes collaboration between stakeholders and advocates for investments in cybersecurity infrastructure and training programs to ensure digital financial services remain secure. 

 

Neo Future Financial Ecosystem 

10.What does “Building Tomorrow’s Neo Future” look like for Kenya? Can you provide an example of how digital tools are transforming sectors like education, agriculture, or healthcare through financial innovation? 

The future of Kenya’s digital economy lies in a seamless integration of technology into all sectors. For example, fintech solutions in agriculture allow smallholder farmers to access microloans and insurance via mobile platforms, driving agricultural productivity and financial security. 

 

Payments Innovation and Economic Transformation 

Payments Revolution:

11.Real-time payments and embedded payments are transforming how people transact. How do you see these innovations influencing Kenya’s e-commerce and retail industries? 

Real-time payments and embedded payments are transforming Kenya’s e-commerce and retail industries by making transactions seamless and efficient. KEPSA encourages interoperability among payment platforms to ensure a frictionless digital payment ecosystem.  

 

Transformative Transactions:

12.Kenya has pioneered transformative transaction methods for the unbanked. What are the next big innovations in this space, and how can they further promote financial inclusion in rural East African markets? 

The next big innovations in financial transactions will likely be driven by AI-powered financial tools. These technologies can enhance financial inclusion by providing alternative credit systems and lower transaction costs. 

 

Future of KEPSA in Driving Policy and Innovation 

13.KEPSA represents diverse industries, from banking to technology. How do you ensure the private sector’s voice is effectively represented in shaping government policies? 

KEPSA ensures the private sector’s voice is effectively represented by engaging in structured policy dialogues with the government and regulatory bodies.  

 

Final Thoughts – Inspiration and Vision 

14.As Vice Chair of KEPSA, what inspires you most about Kenya’s digital and financial transformation? 

What inspires me most is Kenya’s ability to lead in financial innovation globally. From mobile money to fintech startups, we are setting benchmarks for the world. The resilience and creativity of Kenya’s entrepreneurs continue to push the boundaries of what is possible. 

 

……….