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Self-regulation: How a common front can strengthen Kenya’s fintech
A key insight from global fintech associations is that those with a well-defined code of conduct tend to have more productive relationships with regulators.
The fintech world recently converged in Kigali, Rwanda, for the 2025 Inclusive Fintech Forum, a gathering that highlighted the transformative potential of financial technology in driving inclusion.
Among the many insightful discussions, one topic stood out; the role of industry associations in shaping and supporting fintech ecosystems.
This conversation could not have come at a better time for Kenya, where the newly launched Fintech Alliance is set to redefine industry collaboration and engagement.
Industry associations play a crucial role in any fintech ecosystem, acting as the bridge between innovators, regulators, and the broader financial sector.
As Kwame Oppong, Director of Fintech and Innovation at the Bank of Ghana, aptly put it during the forum: “Regulators and industry associations want the same thing. The problem is we haven’t figured out how to make it possible for it to fit what innovators want and to make it fit in regulations. But we can do it through collaboration and engagement.”
This sentiment underscores the fundamental role of fintech associations in aligning industry interests with regulatory frameworks to create an enabling environment for growth.
Across various economies, fintech associations serve three core purposes: advocacy, fostering collaboration, and capacity building. They offer invaluable support by forming working groups, conducting training programmes and creating platforms for leadership.
These efforts help fintech companies navigate regulatory complexities, build stronger partnerships, and collectively address industry challenges.
A key insight from global fintech associations is that those with a well-defined code of conduct tend to have more productive relationships with regulators.
A code of conduct signals maturity, fosters trust, and sets industry standards that improve compliance and self-regulation. This is a lesson the Kenyan fintech industry can take to heart.
By establishing best practices and a strong ethical foundation, the newly formed Fintech Alliance has the potential to enhance the industry’s credibility and regulatory engagement significantly.
However, industry associations are not without challenges. Many struggle with funding sustainability, maintaining active member participation, and engaging regulators who may have different priorities or lack expertise in digital financial services.
A key takeaway from global best practices is the importance of aligning organisational objectives with member needs. Associations that actively consult their members and provide clear value, whether through advocacy wins, strategic networking opportunities or policy influence, tend to thrive.
The Fintech Alliance’s formation presents an opportunity to overcome these common hurdles by unifying the fragmented fintech ecosystem under a single, influential body. By consolidating voices, the alliance can champion policies that foster innovation, promote responsible digital financial services, and attract investment into Kenya’s thriving fintech sector.
Additionally, its ability to engage in cross-border collaboration with other fintech associations can help position Kenya as a fintech powerhouse in Africa, enabling companies to scale beyond local markets.
A particularly promising approach for the alliance would be to document and showcase its impact through tangible success measures. The development of a ‘policy wins’ tracker, for instance, would help fintech stakeholders see the direct benefits of association membership, reinforcing recruitment and retention efforts.
Moreover, continuous regulatory engagement, through two-way capacity building initiatives between fintechs and regulators, would ensure that policies are both innovation-friendly and consumer-protective.
The unveiling of The Fintech Alliance marks a new era for Kenya’s fintech ecosystem. If executed effectively, it will not only give fintech players a stronger voice in shaping policy but also create a self-sustaining framework for growth, trust, and innovation.
By embracing global best practices while addressing local industry needs, this alliance has the potential to solidify Kenya’s position as the leading fintech hub in Africa.
The writer is the Head of External Affairs, Tala Kenya
