Emerging Opportunities in the
Kenyan Consumer Finance
Market: Market Size, Strategies,
Products and Competitive
Landscape: Market Profile
Market Profile
Reference code: FS1138MP
BRICdata
Published: September 2012
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www.bricdata.com
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TABLE OF CONTENTS
TABLE OF CONTENTS
1 Sub-Saharan Africa – Consumer Finance Market Benchmarking .................................................... 5
1.1 Sub-Saharan Africa – Consumer Finance Market Dynamics .................................................................. 5
1.1.1 Housing loans .......................................................................................................................................... 6
1.1.2 Personal loans ......................................................................................................................................... 7
1.1.3 Auto loans ................................................................................................................................................ 8
1.1.4 Credit card loans...................................................................................................................................... 9
1.1.5 Education loans ..................................................................................................................................... 10
1.2 Macroeconomic Factors ........................................................................................................................ 11
2 Consumer Finance Market in Kenya.................................................................................................. 12
2.1 Future Outlook of Consumer Finance in Kenya .................................................................................... 12
2.2 Kenyan Consumer Finance Market Dynamics ...................................................................................... 14
2.2.1 Macroeconomic fundamentals ............................................................................................................... 14
2.2.2 Consumer attitude towards credit .......................................................................................................... 18
2.2.3 Key performance indicators ................................................................................................................... 18
2.2.4 Regulatory framework ........................................................................................................................... 19
2.3 Kenya Consumer Finance Market Size and Growth Potential .............................................................. 20
2.3.1 Overview ................................................................................................................................................ 20
2.3.2 Personal loans ....................................................................................................................................... 21
2.3.3 Credit card loans.................................................................................................................................... 22
2.3.4 Auto loans .............................................................................................................................................. 23
2.3.5 Housing loans ........................................................................................................................................ 24
2.3.6 Education loans ..................................................................................................................................... 25
2.4 Key Trends and Growth Drivers for the Kenyan Consumer Finance Market ........................................ 26
2.5 Industry Structure and Competitive Landscape .................................................................................... 29
2.5.1 Market share of Kenyan banks by assets ............................................................................................. 30
2.5.2 Market share of Kenyan banks by number of loan accounts ................................................................ 31
2.5.3 Housing loans market share .................................................................................................................. 32
2.5.4 Company profiles ................................................................................................................................... 33
2.6 Strategies ............................................................................................................................................... 35
2.6.1 Marketing and product strategies .......................................................................................................... 35
2.6.2 Market entry strategies .......................................................................................................................... 36
2.6.3 Growth strategies................................................................................................................................... 37
2.7 Challenges ............................................................................................................................................. 38
3 Appendix .............................................................................................................................................. 40
3.1 About BRICdata ..................................................................................................................................... 40
3.1.1 Exchange rate........................................................................................................................................ 40
3.1.2 Areas of expertise .................................................................................................................................. 40
3.2 Methodology .......................................................................................................................................... 41
3.3 Disclaimer .............................................................................................................................................. 42
Emerging Opportunities in the Kenyan Consumer Finance Market: Market Size, Strategies, Products and
Page 2
Competitive Landscape: Market Profile
© BRICdata. This product is licensed and is not to be photocopied Published: September 2012
TABLE OF CONTENTS
LIST OF FIGURES
Figure 1: Consumer Finance Market Dynamics in Sub-Saharan African Countries, 2007–2016 .......................................................... 5
Figure 2: Housing Loan Market Dynamics in Sub-Saharan African Countries, 2007–2016 .................................................................. 6
Figure 3: Personal Loans Market Dynamics in Key Sub-Saharan African Countries, 2007–2016 ........................................................ 7
Figure 4: Auto Loans Market Dynamics in Key Sub-Saharan African Countries, 2007–2016 ............................................................... 8
Figure 5: Credit Card Loans Market Dynamics in Key Sub-Saharan African Countries, 2007–2016 .................................................... 9
Figure 6: Education Loans Market Dynamics in Key Sub-Saharan African Countries, 2007–2016 .................................................... 10
Figure 7: Kenyan Consumer Finance Market Dynamics by Category, 2007–2016 .............................................................................. 13
Figure 8: Kenyan GDP at Constant Prices (US$ Billion), 2007–2016 (Base Year 1999–2000) ............................................................. 14
Figure 9: Kenyan Inflation Rate (%), 2007–2016 .................................................................................................................................... 15
Figure 10: Kenyan FDI Inflows (US$ Million), 2007–2010 ...................................................................................................................... 16
Figure 11: Kenyan Urban and Rural Populations, 2007–2016............................................................................................................... 17
Figure 12: Kenyan Banks Total Assets (KES Billion), 2007–2011 ........................................................................................................ 18
Figure 13: Kenyan Commercial Banks Total Deposits (KES Billion), 2007–2011 ................................................................................ 19
Figure 14: Kenyan Consumer Finance Market Size (KES Billion), 2007–2016 ..................................................................................... 20
Figure 15: Kenyan Personal Loans Category Size (KES Billion), 2007–2016 ...................................................................................... 21
Figure 16: Kenyan Credit Cards Loans Category Size (KES Billion), 2007–2016 ................................................................................ 22
Figure 17: Kenyan Auto Loans Category Size (KES Billion), 2007–2016 ............................................................................................. 23
Figure 18: Kenyan Housing Loans Category Size (KES Billion), 2007–2016 ....................................................................................... 24
Figure 19: Kenyan Educational Loans Category Size (KES Billion), 2007–2016 ................................................................................. 25
Figure 20: Kenyan Housing Loan Accounts, 2007–2011....................................................................................................................... 26
Figure 21: Kenyan Bank Non-Performing Loan Ratio (%), 2007–2011 ................................................................................................. 27
Figure 22: Kenyan POS Terminals, 2007–2011 ...................................................................................................................................... 27
Figure 23: Kenyan Credit Card, 2007–2011 ............................................................................................................................................ 28
Figure 24: Kenyan Banking Industry Structure, December 2011 ......................................................................................................... 29
Figure 25: Kenyan Banking Industry Structure – Ownership vs Assets, December 2011 .......................................