Key regions: Germany, Brazil, Australia, Israel, United States
The Crowdfunding market in Kenya has been steadily growing in recent years, driven by customer preferences for alternative financing options and the rise of digital platforms.
Customer preferences: Kenyan customers are increasingly turning to crowdfunding as a way to fund their projects or businesses. This is due to the convenience and accessibility of crowdfunding platforms, which allow individuals to easily create campaigns and reach a wide audience of potential backers. In addition, crowdfunding provides an opportunity for Kenyans to bypass traditional financial institutions, which may have strict lending criteria or high interest rates.
Trends in the market: One trend in the Kenyan crowdfunding market is the emergence of niche platforms catering to specific industries or causes. For example, there are platforms dedicated to funding social impact projects, creative arts initiatives, and agricultural ventures. This specialization allows backers to support causes they are passionate about and provides project creators with a targeted audience. Another trend is the increasing use of reward-based crowdfunding, where backers receive non-financial rewards in exchange for their support. This can range from early access to products or services to personalized experiences with the project creators.
Local special circumstances: Kenya has a vibrant entrepreneurial ecosystem, with a high number of startups and small businesses. However, access to traditional financing can be challenging for these ventures, especially those in the early stages. Crowdfunding offers a viable alternative for these entrepreneurs to raise capital and bring their ideas to life. Additionally, Kenya has a large diaspora population who are often eager to support projects in their home country. Crowdfunding platforms provide a way for Kenyans living abroad to contribute to local initiatives and stay connected to their roots.
Underlying macroeconomic factors: The growth of the Kenyan crowdfunding market can be attributed to several macroeconomic factors. Firstly, the country has experienced significant advancements in digital infrastructure and mobile payment systems, making it easier for individuals to participate in crowdfunding campaigns. Additionally, Kenya has a relatively young population with a high level of internet and smartphone penetration. This tech-savvy demographic is more likely to embrace crowdfunding as a means of financing and supporting innovative projects. Finally, the Kenyan government has recognized the potential of crowdfunding and has taken steps to create a favorable regulatory environment. This includes implementing crowdfunding regulations that provide protection for both backers and project creators, while also promoting transparency and accountability. In conclusion, the Crowdfunding market in Kenya is experiencing steady growth, driven by customer preferences for alternative financing options and the rise of digital platforms. The emergence of niche platforms, the use of reward-based crowdfunding, and the country's vibrant entrepreneurial ecosystem are all contributing to the expansion of the market. Additionally, underlying macroeconomic factors such as digital infrastructure, a young and tech-savvy population, and supportive government regulations are fueling the growth of crowdfunding in Kenya.
Data coverage:
The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.Modeling approach / Market size:
Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.
Mon - Fri, 9am - 6pm (EST)
Mon - Fri, 9am - 5pm (SGT)
Mon - Fri, 10:00am - 6:00pm (JST)
Mon - Fri, 9:30am - 5pm (GMT)
Mon - Fri, 9am - 6pm (EST)
