The aim of this book is to stimulate debate on how we analyse and think about the future of market development and its implications for poverty and growth. The book was commissioned by Financial Sector Deepening (FSD) Kenya as an invitation to scholars to dig more deeply into the data that have been collected over the past ten years by FSD and its partners, especially the Central Bank of Kenya (CBK). While a wealth of data exists on Kenya’s financial markets, our understanding of market drivers and their development impacts is still limited. Drawing on cutting-edge methodology and sophisticated analysis, the purpose of this book is to take a step back from the narrative of progress that has characterised financial inclusion reports. The chapters take a more critical look at the financial landscape, highlighting constraints to infrastructural expansion, effects of market structure, demand-side drivers of uptake and usage, as well as the implications of financial sector development for poverty and growth. The seven chapters can be grouped into three broad areas. The first three chapters look at the achievements and constraints to formal access, leveraging demand and supply-side data. The middle chapters look at the effects of digitisation on financial inclusion, while the final chapters propose new measures of financial inclusion.
Edited by Amrik Heyer and Michael King