The Draft Kenya National Financial Inclusion Strategy (NFIS) 2025–2028 is a flagship policy initiative aimed at fostering a more inclusive, resilient, and sustainable financial ecosystem by moving beyond traditional financial inclusion toward financial health. The FinAccess Household Survey (2024) shows that 84.8% of Kenyan adults now have access to formal financial services, a dramatic increase from just 26.7% in 2006. However, only 18.3% of adults in Kenya are considered financially healthy, a decline from 39.4% in 2016.

Financial health has three key dimensions: managing day-to-day needs to cover basic living expenses, coping with financial shocks through savings, insurance, or alternative income sources, and investing in the future by planning for long-term goals such as retirement, education, or business expansion.

Furthermore, Kenya’s financial inclusion framework, although anchored in Vision 2030 and the Fourth Medium-Term Plan (MTP IV), and supported by applicable legal and regulatory structures, remains fragmented. The NFIS, therefore, aims to provide a coordinated framework to advance financial inclusion and help Kenya catch up with its neighbours, such as Tanzania, which is now implementing its third NFIS (2023–2028), and Uganda, in its second NFIS (2023–2028).

The strategy was developed jointly by the Central Bank of Kenya (CBK), the National Treasury, financial sector regulators, relevant government departments, industry associations, and digital finance stakeholders, including the Kenya Bankers Association and the Digital Financial Services Association of Kenya (DFSAK). It is currently open for public participation, with submissions due by Thursday, 9th October 2025.

The strategy is anchored on six strategic pillars, each supported by a set of initiatives and targets.

Pillar 1: Deepen penetration of Access to Financial Services 

This pillar seeks to reduce financial exclusion by enhancing physical and digital infrastructure, expanding identification systems, and enabling inclusive onboarding. Key initiatives include investing in Mobile National Registration Bureau units to increase national identification card (ID) ownership. At the same time, partnerships with mobile network operators aim to expand reliable mobile access in sub-locations. Rural finance will be strengthened through the expansion of microfinance institutions and SACCO operations, and public campaigns and incentives will promote a culture of savings, aiming to increase the national savings rate from 68.1% to 74%.

Pillar 2: Enhance the Usage of Quality and Affordable Financial Products and Services 

Beyond access, the strategy emphasises improving the quality, relevance, and uptake of financial services. Key initiatives include rolling out the Fast Payment Systems and exploring the feasibility of establishing an open finance framework within one year. Product innovation will be encouraged, with a focus on inclusive, tailored solutions for micro, small and medium enterprises (MSMEs), women, and youth. Transaction costs will be reduced through the regulation and capping of mobile peer-to-peer charges, with campaigns to expand formal savings and investment uptake.

Pillar 3: Strengthen Consumer Protection, Market Conduct, and Financial Literacy

To ensure sustainable financial inclusion, the third pillar focuses on consumer protection, market conduct regulation, and financial literacy. A comprehensive consumer protection and market conduct law will be developed to apply to all financial providers. A financial literacy and capability framework will guide the implementation of targeted digital programs as well as school- and community-based education. Measures to combat over-indebtedness will include mandatory creditworthiness assessments and the promotion of alternative scoring models, aiming for a 30% reduction in over-indebtedness. Digital consumer protection will be strengthened through e-money and digital wallet compensation guidelines, and efforts to combat money laundering and terrorist financing will ensure that the public is well-informed about compliance requirements.

Pillar 4: Develop and foster Inclusive and Sustainable Green Finance

This pillar aims to align Kenya’s financial system with environmental and climate-related imperatives. Key initiatives include finalising and implementing the Kenya Green Finance Taxonomy, and portfolio diversification will be encouraged through the setting of green lending targets and the promotion of sustainable financial products. Regulatory guidelines will be developed to support operational carbon markets, and public awareness campaigns will promote the adoption of green financial products among consumers.

Pillar 5: Promote Rural Agriculture Finance

Given the importance of agriculture to Kenya’s economy and livelihoods, this pillar promotes tailored agri-finance solutions. Initiatives include increasing farmers’ access to credit through targeted partnerships, aiming to raise the proportion of farmers accessing agri-credit from 43 %to 60%. Repayment terms will be aligned with agricultural seasons to reduce defaults, and agri-insurance products bundling credit with crop or livestock coverage will be expanded to increase bundled insurance adoption from 19.3% to 50%.

Pillar 6: Improve Access to Finance for Women PWDs, Youth, MSMEs, Informal Sector & FDPs

The final pillar targets historically underserved populations, including women, youth, persons with disabilities, forcibly displaced persons, and micro, small, and medium enterprises (MSMEs). Initiatives include financial literacy campaigns to empower women, enhance their product knowledge, as well as provide affordable smartphones and improve connectivity. Youth financial services will be expanded with tailored accounts, digital savings, and job-linked finance. Access for persons with disabilities will be enhanced through the use of inclusive product design and the development of upgraded digital and physical interfaces. Inclusion of forcibly displaced persons will be supported by simplifying KYC requirements and promoting access to documentation. Additionally, the strategy will formulate and implement the WE Finance code to champion women’s financial inclusion.

 Conclusion 

The Draft National Financial Inclusion Strategy (NFIS) 2025–2028 signals a major shift in Kenya’s financial inclusion agenda, focusing on financial health rather than access alone. Its success will hinge on effective partnerships between the public and private sectors, as well as the industry’s ability to translate policy ambitions into practical, sustainable solutions for all Kenyans. For players in the fintech space, it reinforces the platform’s central role in closing access gaps but also calls for greater attention to governance, consumer protection, and inclusivity.