Nairobi,KENYA:Half of all Kenyan adults have a bank account, either alone or jointly with someone else, up from 14% ten years ago.
A new survey conducted by an NGO Twaweza East Africa has revealed that people living in urban areas are likely to access financial services as compared to those in rural areas.
The survey Money Matters: Citizens and Financial Inclusion revealed on Tuesday that 55 per cent of urban dwellers had opened bank accounts and the latter had a 43 per cent reach.
Senior Programmes Officer Victor Rateng’ told Baraka FM that more businesses took place in towns and there was need to open bank accounts.
“Business transactions services like cash transfers and payments are essential in the daily running of an enterprise and banks facilitate this. In rural areas there are not many business set ups and payments are done without using formal financial services,” Mr. Rateng’ remarked.
Respondents in the rural areas did not express interest in opening bank accounts.
“91 per cent of countryside dwellers thought that they had too little cash to start saving in a financial institution,” he said.
Further revelations made by the survey indicate that 8 out of 10 Kenyans (84 per cent) are financially included in that they have a bank or mobile money account, an insurance product, or a loan from a formal institution.
Half of all Kenyan adults have a bank account, either alone or jointly with someone else, up from 14 per cent ten years ago.
According to the findings, access to banking services is also below average among women and the poor.
Men are more likely to 87 per cent of men have access to formal financial services as compared to women who stood at 83 per cent.
One third of Kenyans have borrowed money in the past five years.
Three quarters of Kenyan adults are users of mobile money services, up from 62 per cent in 2013.
M-PESA is the dominant provider of mobile money services, with a significant market share of 98% of all users.
1,739 respondents were interviewed during the service which took place between 23 Sept 16 – 11 Oct 16.