Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
FinTech
2.
Fintech market
2.1
Which sub-sectors of the fintech industry have become most embedded in your jurisdiction?
Kenya
  • Payments and billing;
  • Money transfer remittances; and
  • Lending.
  • For more information about this answer please contact: Richard S. Malebe from RSM Law LLP
    2.2
    What products and services are offered?
    Kenya
  • Digital lending;
  • Global remittances;
  • Peer-to-peer (P2P) payments; and
  • P2P lending.
  • For more information about this answer please contact: Richard S. Malebe from RSM Law LLP
    2.3
    How are fintech players generally structured?
    Kenya

    Answer ... They are generally set up as private limited liability companies limited by shares under the Companies Act, 2015.

    For more information about this answer please contact: Richard S. Malebe from RSM Law LLP
    2.4
    How are they generally financed?
    Kenya

    Answer ... Fintech start-ups are mostly financed through equity and convertible debt. The Companies Act 2015 allows for classes of shares (ordinary and preference), and thus investors can be issued with preference shares. Companies in the growth and expansion stage may be financed through debt, equity or a combination of both.

    For more information about this answer please contact: Richard S. Malebe from RSM Law LLP
    2.5
    How are they positioned within the broader financial services landscape?
    Kenya

    Answer ... They have a growing market share, as they are meeting consumer expectations and offering an improved consumer experience, and serve both the banked and unbanked population.

    For more information about this answer please contact: Richard S. Malebe from RSM Law LLP
    2.6
    Do start-ups generally outsource back office functions and is there a developed market for them to access? What are the legal implications of outsourcing?
    Kenya

    Answer ... Although there is a developed market for outsourced back office functions, generally fintech start-ups do not outsource their back office functions. The Employment and Labour Relations Court has held that outsourcing is legal as long as set parameters are met. Non-compliance will result in the award of damages by the court. Where there is an outsourcing service agreement, the remedies depend on the nature of breach and may include damages, injunctions and rescission.

    For more information about this answer please contact: Richard S. Malebe from RSM Law LLP
    Contributors
    Topic
    FinTech