Analysis of the Impact of FinTech on African Economies (A Benchmark Study on Kenya since 2008)

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This study aims to analyze the economic benefits of financial technology (FinTech) applications in Africa by applying econometric models to estimate their impact on economic growth in Kenya—one of the leading countries in Sub-Saharan Africa in the use of FinTech and the most advanced in adopting mobile wallets, particularly the M-PESA platform.
The findings indicate that FinTech serves as a key driver of economic transformation across Africa by promoting financial inclusion, providing digital banking services, and supporting entrepreneurship. FinTech companies have introduced innovative products across multiple sectors of the African economy, including finance, agriculture, manufacturing, healthcare, energy, and education—thereby accelerating the continent’s path toward the Fourth Industrial Revolution.
In Kenya, the econometric model reveals that FinTech-related variables—namely, the value of banking transactions conducted via mobile phones, the M-PESA system, and the Internet—exert the strongest positive effects on economic growth when compared to inflation and unemployment rates. Specifically, a 1% increase in the value of mobile banking transactions is associated with a 4.7% rise in economic growth, while a 1% increase in M-PESA transactions is linked to a 7.6% growth rate.

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