At the Growth Summit: Building Strong Fintech Partnerships, held at iHub Nairobi on February 11, Paystack’s Kenya Country Lead, Caroline Hane-Weijman, praised the Central Bank of Kenya (CBK) as a forward-thinking and collaborative regulator, highlighting its role in fostering fintech innovation across Africa.
The summit, co-hosted by Caroline Hane-Weijman, Paystack’s Kenya Country Lead, and Nubi Kay, Startup Programs Lead, brought together leaders from major financial and fintech institutions, including the Central Bank of Kenya, Ebanx, Onafriq, Visa, and others. The discussions revolved around the role of partnerships in scaling fintech solutions, bridging cross-border payments, and enhancing financial inclusion.
A Pioneering Approach to Fintech Regulation
The Central Bank of Kenya has emerged as one of the most progressive financial regulators in Africa, actively engaging with fintech companies to create an enabling environment for growth. Paystack, a leading payment infrastructure provider in Africa, acknowledged the CBK’s proactive stance in balancing regulation with innovation.
“The Central Bank of Kenya stands out as a forward-thinking regulator that actively collaborates with fintechs to create solutions that drive financial inclusion and cross-border growth,” said Caroline Hane-Weijman, Paystack’s Kenya Country Lead, during the summit.
Kenya has long been a fintech trailblazer, home to mobile money pioneer M-Pesa and a thriving digital payments ecosystem. The CBK has been instrumental in enabling seamless integration between banks, fintechs, and mobile money operators while ensuring that regulatory compliance fosters rather than stifles innovation.
Fintech Partnerships as a Catalyst for Growth
The Growth Summit emphasized the role of strategic partnerships in scaling financial services across Africa. Discussions centered on key topics such as:
- Cross-Border Transactions: Addressing friction in international payments and how regulators can facilitate smoother transactions.
- Public-Private Collaboration: How fintechs and regulators can work together to create sustainable policies.
- Navigating Regulatory Landscapes: Understanding how compliance can be leveraged as a growth enabler rather than a barrier.
The presence of key industry stakeholders, including representatives from Visa and Onafriq, underscored the growing interest in leveraging partnerships to solve Africa’s biggest financial infrastructure challenges.
Key Insights from Michael Eganza, CBK Director of Banking and Payment Services
At the event, Michael Eganza, the Director of Banking and Payment Services at CBK, shared insights from his journey transitioning from the private sector to his current role. He emphasized the CBK’s 2025 agenda, which includes:
- Optimizing Instant Payments: Enhancing the speed and reliability of digital transactions.
- Open Finance: Encouraging interoperability between financial institutions to drive inclusion.
- Consumer Protection: Strengthening measures to safeguard users in the digital finance space.
- Financial Crime Prevention: Implementing robust frameworks to curb fraud and illicit transactions.
Eganza also announced upcoming changes to Kenya’s Real-Time Gross Settlement (RTGS) system, set to take effect in June/July 2025, extending transaction windows to improve efficiency.
Addressing PSP Licensing and Stablecoin Developments
During the Q&A session, Eganza addressed concerns regarding PSP (Payment Service Provider) licensing, noting that while numerous applications were under review, the CBK is reevaluating the licensing framework based on transaction volumes. He highlighted that some entities seek licenses primarily for fundraising without actively processing transactions, an issue the CBK aims to address with new regulatory models.
On the topic of stablecoins and cryptocurrency, Eganza referenced the UAE’s regulatory approach as a model under consideration. However, he pointed out that M-Pesa’s dominance as an e-money provider already fulfills many of the roles a stablecoin would serve in Kenya’s financial ecosystem.
A Pivotal Moment at the Cusp of Africa Tech Summit
The Growth Summit took place just as the Africa Tech Summit kicked off in Nairobi, bringing together startups, investors, and tech leaders from across the continent. The timing of the event emphasized the increasing collaboration between regulators and fintech firms to shape the future of financial services in Africa.
As Africa’s fintech ecosystem continues to expand, events like the Growth Summit serve as crucial forums for fostering dialogue between stakeholders. Paystack’s recognition of the CBK’s role in shaping the fintech landscape is a testament to Kenya’s growing influence in digital finance and regulatory innovation.
With fintech adoption surging across the continent, collaboration between financial regulators and tech innovators will be essential in driving sustainable growth. The Central Bank of Kenya’s approach offers a blueprint for other regulators across Africa, demonstrating how engagement and adaptability can unlock fintech’s full potential.
