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Blockchain is opening up doors to Kenya’s R265 Billion Economy

Jake Hill
Jake Hill

The size of the informal economy in Kenya is R265 billion. Up until now, it is not covered by any formal banking or financial channels. The banks in Kenya are not able to provide banking facilities to its individuals

A good example is Jennifer Wacheke. She is a vegetable seller in Nairobi. With the help of blockchain-based solutions, she’s able to take loans for buying a daily supply of vegetables. Also, her daily supplies of vegetables are delivered to her by twigaFoods. As a result, she does not have to head over to the local market. She also saves a lot of time since she does not have to bargain with the local vendor’s. Moreover, she does not have to deal with transportation as well. Also, as she repays the loan on a daily basis, she’s able to build a credit score as well.

According to her, her business has become much more efficient with the help of loans. She further added that since she’s paying these loans are in a timely manner, she will be able to get bigger loans as well. As a result, she will be able to expand their business even further.

Twiga is the company which is not only supplying her with vegetables but also lending the money as well. With the help of blockchain technology, the company is able to keep a track of repayment habits. As a result, the company is able to decide whether further loans can be given to her or whether she is not creditworthy. As a result, the company is able to not only expand its business but also the business of various other such vendors.

Financing in Africa:

Such financing gaps in Africa are plenty. The total lending is pegged at $ 331 billion. That is why, if companies like Twiga are able to indeed increase this financing, the business which they can generate is significant. This is one of the main reasons why the potential in such a business model is pretty huge.

According to 4G CEO, Wayne Hennessy-Barrett, their company alone will lend around $ 40 million to the micro, small and medium enterprises in the next one year. There are many other companies which are catering to this segment.

It seems like, with the help of blockchain-based systems and tracking, the efficiencies of lending businesses in Africa are increasing significantly. This is ensuring that the uncovered customers are also able to connect themselves with the financers.

africaBlockchainkenyatechnology

Jake Hill

Coming from a University Education in Computer Science, I am interested in blockchains and Bitcoin since 2014 and even mined at the time. The rumors of Bitcoin bubble made me run away, but I have com