Kenya’s Digital Payments Market Set to Grow 14% Annually Through 2028

Kenya’s fintech ecosystem continues to prove why it remains a continental leader in digital finance. A recent report by SDK Finance projects that the country’s digital payments market will expand at a compounded annual growth rate of about 14% between 2024 and 2028, driven by rising smartphone adoption, deeper internet penetration, and an increasingly tech-savvy population. For microfinance institutions and digital lenders, this growth is not just a statistic it represents a wave of opportunity to serve more people, faster, and with greater efficiency than ever before.

The country’s transformation began with M-PESA, which redefined how money moves across Kenya. What we are witnessing now is the second wave: a convergence of mobile banking, digital wallets, and fintech integrations that make financial transactions simpler, safer, and more transparent. As more people adopt mobile money for everyday use from paying school fees to purchasing goods fintech players like Open Valley Group (OVG) have an open runway to expand their reach and enhance lending operations.

For OVG, a stronger digital payments infrastructure means more than just convenience. It translates to faster microloan disbursements, improved repayment tracking, and reduced administrative costs. It also enhances transparency for both lenders and borrowers, a crucial factor in building trust in underserved regions where formal banking infrastructure remains limited. With seamless mobile transactions, OVG can focus more on education, financial literacy, and personalized support the aspects that truly set it apart.

The broader implications extend beyond Kenya. As global investors eye Africa’s expanding fintech market, the ability to demonstrate robust, data-driven systems is becoming a competitive advantage. The growth in digital payments provides the backbone for such systems, creating a fertile environment for responsible cross-border microfinance partnerships. OVG’s collaboration with technology partners ensures that its platforms are secure, compliant, and ready for scale as connectivity improves even in rural counties.

According to the Central Bank of Kenya, mobile money transactions hit a record KSh 8.2 trillion in 2024, a 17% rise from the previous year. This growth shows the increasing reliance on digital platforms as Kenya pushes toward a cash-lite economy. The government’s continued investment in ICT infrastructure, alongside private-sector innovation, will only accelerate this trend.

For microfinance clients, the benefits are tangible. Borrowers can receive and repay funds in real time without traveling long distances. Rural women’s groups can pool savings digitally. Youth entrepreneurs can access small working-capital loans through apps like AfriCash, integrated with OVG’s systems. Each transaction, no matter how small, strengthens Kenya’s inclusive financial fabric.

If the past decade was about access, the coming years will be about optimization making digital finance smarter, faster, and more human-centered. OVG is part of this evolution, ensuring that every innovation ultimately serves people, not just profits. The 14% growth projection is not merely an industry forecast; it is a reflection of the country’s resilience and ambition, and a reminder that when technology and purpose align, financial inclusion can reach new heights.