Kenya may be the home of Africa’s most popular mobile money platform, MPesa, it is also home to hundreds of mobile lending applications that have helped to foster limitless access to credit in the country. Come 2020, Nigeria’s digital financial services company, Carbon, will be one of the platforms vying for a share of the digital banking market in Kenya.
Carbon which has enjoyed some degree of success in the Nigerian market is hoping to convince Kenyans to access loans on its platform using their National ID number and a selfie, as well as the phone number associated with their mobile wallet. They will also have access to payment services to pay utility bills and buy airtime directly from the Carbon app.
In view of its progressive regulatory environment and high levels of financial inclusion, Kenya is one of the most attractive markets in Africa. More than 60 percent of Kenyans own a smartphone and more than one in four (27 percent) has taken a digital loan. The Central Bank of Kenya values the mobile payment sector at $36 billion with the sector expected to reach a $125 billion valuation by 2025.
In Kenya, unemployment lies in the average level of African countries. Many people are working, however in jobs or as small business owners, earning a relatively low income, and are not always able to afford things like a personal vehicle.
While Carbon may have Tala, OKash, and Branch to contend with in its Kenyan adventure, it has enlisted the help of partners such as Transunion CRB, MPesa and other a few payment platforms to aid its launch.
“This expansion presents an opportunity to bring learning from other African successful markets to Kenya,” said Chijioke Dozie, CEO and co-founder of Carbon. “It also enables us to explore what has made the Kenyan financial services industry so successful and how this success can be replicated in other markets.”
Since launching in 2016, Carbon has grown its user base to 1.8 million, initially providing consumers with access to credit, simple payment solutions, high-yield investment opportunities and easy-to-use tools for personal financial management. The company disbursed more than $35.6 million in loans and in 2018 alone achieved revenues of $10.4 million. Carbon also secured a $5 million debt facility from Lendable, a New York and Nairobi-based technology-enabled funding provider, in March 2019.
Dozie also explained that the expansion to Kenya is in line with the company’s vision of a pan-African digital bank for Africans and Africans in the diaspora.
“Taking our services to Kenya represents the first step in realising that vision and truly delivering financial services that Africans at home and abroad need to thrive and excel.
