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Smart Investing in Fintech: A Guide for Kenyan Investors

Kenyan fintech companies are at the forefront of innovation, developing groundbreaking solutions that address some of the country’s most pressing financial challenges. For example, Kenyan fintech companies like Safaricom have revolutionized the way Kenyans access and use financial services through M-Pesa. M-Pesa, the world’s leading mobile money platform, has enabled millions of Kenyans to access financial services without a bank account. Mpesa’s embedded financial services, like Fuliza overdraft, provide Kenyans instant credit access, even with poor credit history.

As a Kenyan investor, there are many opportunities to invest in fintech and potentially earn high returns. However, it is essential to understand the risks involved and to invest wisely.

Here are some tips for smart investing in fintech in Kenya:

Do your research

The first step to smart investing is to do your research. Learn about the different fintech companies operating in Kenya, their business models, financial health, and leadership teams. Look for companies that are innovative, scalable, and have a proven track record. Consider investing in local fintech companies. This is a great way to support the Kenyan tech sector and potentially benefit from the country’s growing economy.

Tips for ensuring the fintech company is resolving a problem and their solution is scalable.

  • Research the problem that the fintech company is trying to solve. Is it a real problem that people are facing? Is it a problem that is large enough to support a business?
  • Analyze the fintech company’s solution. Is it a viable solution to the problem? Is it innovative and different from what is currently available?
  • Look at the fintech company’s team. Are they experienced and qualified to execute their plan? Do they have a proven track record of success?
  • Assess the fintech company’s market opportunity. Is there a large enough market for their solution? Is the market growing?
  • Look at the fintech company’s business model. Is it sustainable? Can they generate enough revenue to cover their costs and make a profit?

Diversify your portfolio

Don’t put all your eggs in one basket. Diversify your fintech investments across different sectors and companies to reduce risk. For example, you could invest in a mix of peer-to-peer lending platforms, mobile payment platforms, and blockchain-based startups.

Stay informed about regulatory changes.

The fintech industry is heavily regulated. Keep up with the latest regulatory changes in Kenya to understand how they may impact your investments. Be aware of the risks involved in investing in the tech companies. Fintech is a relatively new industry, and there is always the risk of losing money. Doing your research and investing only in what you can afford to lose is crucial.

Consider your risk tolerance.

Some fintech investments, such as cryptocurrencies, are riskier than others. Before investing, it is crucial to assess your risk tolerance and invest only in what you can afford to lose. Start small. You don’t need to invest a lot of money to get started with fintech investing. Start by investing a small amount of money and build your portfolio over time.

Review your portfolio regularly.

The fintech industry is constantly evolving. It is important to review your portfolio regularly and make adjustments as needed to ensure that it is aligned with your financial goals and risk tolerance. The fintech landscape is constantly changing. Keep an eye on your investments and adjust as needed to ensure that your portfolio aligns with your financial goals and risk tolerance.

Tax compliance

Ensure that the fintech company you invest in is registered with the Kenya Revenue Authority (KRA). You can check this by visiting the KRA website and searching for the company’s name. Make sure that the fintech company is paying all of its applicable taxes. You can ask the company to provide you with copies of their tax returns or to provide you with a letter from their accountant confirming that they comply with their tax obligations.

Be aware of the different types of taxes that fintech companies are subject to in Kenya. These include income tax, value-added tax (VAT), and excise duty. For more information on fintech tax compliance in Kenya, please visit the KRA website or consult a qualified tax advisor.

Seek professional advice

If you are unsure where to start or how to build a fintech portfolio, consider seeking advice from a financial advisor. We have a team of professionals at the Fintech Association of Kenya to help you get started. They can help you assess your financial goals and create a customized investment strategy.

Here are some specific fintech investment opportunities that may be of interest to Kenyan investors:

Peer-to-peer lending platforms

Peer-to-peer lending platforms allow investors to lend money to individuals and small businesses. These platforms can offer attractive returns but are riskier than traditional investments. Is Pezesha a peer-to-peer platform?

Mobile payment platforms

Mobile payment platforms are becoming increasingly popular in Kenya. These platforms allow users to send and receive money, make payments, and access other financial services using their mobile phones.

Blockchain-based startups

Blockchain technology is the underlying technology behind cryptocurrencies. There are a number of blockchain-based startups operating in Kenya that are developing innovative financial products and services.


Cryptocurrencies are digital or virtual tokens that use cryptography for security. Cryptocurrencies are highly volatile, but they offer the potential for high returns.

Smart investing in fintech can be a rewarding experience. By following the tips above, Kenyan investors can confidently navigate the world of fintech and potentially achieve their financial goals. 

As you venture into this exciting domain, armed with research, diversified investments, and an informed perspective, you are not just investing in technology—you are investing in Kenya’s vibrant financial future. Always prioritize safety, embrace continuous learning, and tap into experts’ wisdom when in doubt. With the right strategies, fintech promises a rewarding investment journey. Welcome aboard Kenya’s fintech express!

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