Kenyan banks, insurers court tech startups for digital products expansion

The story of Abubakar Godhana Ali, who received his first formal credit via a digital app ten years ago, illustrates the transformation of Kenya's financial sector. Digital loans now account for over 70% of disbursements, and fintechs capture more than half of the microinsurance market. Equity Group CEO James Mwangi acknowledged that traditional banks may not survive the agility of fintechs. Consequently, banks and insurers are courting these startups.