Promotion of Financial Inclusion
Two billion people or 38% of adults in the world do not use formal financial services1, and 73% poor people are unbanked because of costs, travel distances and the often-burdensome requirements involved in opening a financial account. Their ranks include more than half of adults in the poorest 40% of households in developing countries.

Being financially excluded is linked to income level: The richest 20% of adults in developing countries are more than twice as likely to have a formal account as the poorest 20%. Yet, while the poor don’t have the same access to financial products as wealthier individuals, their need for financial services may be even greater. The key components of financial inclusion include; financial literacy/education, savings, credit schemes, insurance, pension schemes, and remittances and payment systems As a catalyst for poverty reduction and for shared prosperity, financial inclusion is a key to achieving Kenya’s Vision 2030 as financing is the key driver to every goal set to be achieved.

In Kenya, the number of people formally included by the financial system is 75.3% and those excluded are 17.4%. K-Rep Development Agency will play a significant role in promoting financial inclusion through developing appropriate products, establishment of financial institutions, undertaking financial literacy/ education activities as well as implementing projects that promote financial inclusion. Digital financial literacy which has been tested will be expanded to cover most unreachable populations in the country as well as in the region.

Financial Product Development and Delivery Channels
KDA will be involved in developing, testing and scaling up of financial products and services for the base of the pyramid populations. Developing technologically enabled products will be preferred in this era of digital financial services.

Institutional Development and Evaluations
While undertaking institutional development activities, KDA will adopt a 360-degree approach in supporting establishment of new institutions or strengthening the existing one, firstly through undertaking institutional diagnostics, context analysis, design/re-design, support implementation of the proposed
strategies and keep monitoring and evaluating progress. The diagram below summarizes these key steps.

In addition to institutional development, KDA will also endeavour to conduct project evaluation; baseline,midterm and end term surveys for various institutions on projects implemented.

Capacity Development
Capacity development will be undertaken at two levels of either institutions and or individuals who are in these institutions or supported by the identified/supported institutions. As part of institutional development, capacity development at various levels will be instrumental for effective delivery of services and or products to the end users/consumers.

Capacity development will be informed through institutional diagnostics and appropriate interventions developed to address gaps identified.

The process of capacity development can be undertaken on social, economic, and environmental spheres to promote sustainability. The figure below summarizes the anticipated outcomes on the three spheres of economic, social and environmental.

Broad Strategy
“To offer a high level technical support and consultancy services for the area of development finance, mobile technology solutions and institutional development and capacity building with the aim of promoting inclusive development”

Specific strategy
To develop a pool of high level consultants/technical people to support the achievement of the broad goal for the institution.