Slow Licensing Procedures Create Challenges for Kenyan Fintech Innovators

Fintech startups expanding to Kenya face major hurdles due to the lengthy and complex licensing process, which can take up to two years for a payment service provider (PSP) license.

This delay forces startups to partner with established telcos and banks to navigate high market entry barriers and shifting regulations. The traditional players continue to dominate as a result. One potential solution is “license passporting,” a regulatory approach that would enable fintechs to operate across multiple countries within a region with a single license.

Although no African country has yet adopted this system, it could simplify cross-border operations and benefit consumers with lower prices, better products, and more choices.

Clever Robot News Desk 15^th September 2024