Financial Inclusion: Kenya, Rwanda, Uganda 


Financial Sector Deepening (FSD) Kenya


FSD Kenya was established in early 2005 to support the development of financial markets in Kenya as a means to stimulate wealth creation and reduce poverty. Working in partnership with the financial services industry, the programme’s goal is to expand access to financial services among lower income households and smaller enterprises. It operates as an independent trust for which KPMG are the trustees.


The conceptual underpinning of FSD’s work is the “making markets work for the poor (M4P)” approach, which has emerged over the last 10 years as an increasingly influential development paradigm. FSD's primary focus is developing the capacity of the financial services industry, working directly with a diverse range of financial institutions, business service providers and support institutions. In doing so, it aims to complement other initiatives - such as reforms of the enabling environment and wholesale lending or investments programmes supporting emergent MFIs.FSD Kenya is widely recognised as a success story associated with, among other initiatives, M-PESA and Equity Bank.


Programme Highlights


  • FSD Africa: A crucial design feature of the FSD Kenya programme was to increase cohesion amongst donor efforts to make financial sectors more inclusive in Africa. To take advantage of the scope for continental collaboration, KPMG has supported the inception of the Skills and Innovation for Micro Banking in Africa (SIMBA) programme, also known as FSD Africa. SIMBA is DFID’s largest programme for financial sector deepening in Africa to date. It has been designed to address the opportunities for collaboration on financial sector deepening at a continental level that country programmes are not well positioned to address. These include expanding financial access in small-scale financial systems through catalysing regional capacity building markets, increasing the supply and mobility of skilled labour in the micro-finance sector, and supporting the transfer of skills, knowledge and technologies between markets.
  • Hunger Safety Net Programme: DFID’s Hunger Safety Net Programme is delivered through FSD Kenya. KPMG is involved in review and approval of payments for the programme, which makes cash payments to nearly 60,000 beneficiary households in Northern Kenya on a monthly basis. FSD Kenya has been facilitating these payments since 2009, channelling over US$ 11 million to four counties in Northern Kenya through 133 pay points.



Access to Finance Rwanda (AFR)


Lack of access to financial services is a major constraint to economic growth that can trap people in cycles of poverty. Better access to financial services can significantly increase the financial security of the poor by allowing them to better withstand economic shocks and take advantage of economic opportunities.


Building on our experience with the Financial Sector Deepening Trust in Kenya, KPMG set up the AFR programme as a company limited by guarantee in 2011. KPMG recruited staff and established operational systems, and now provides fiduciary oversight to the programme. Working with an M4P approach, AFR aims to increase access to financial services for poor rural and urban people, particularly women, and micro and medium enterprises, with the ultimate goal of improving the lives of 500,000 poor people in Rwanda.



Financial Sector Inclusion Programme – Uganda


In early 2013, IDAS began the design and implementation of a new financial sector inclusion programme in Uganda. For this programme we are building on our experience in Kenya and Rwanda to tackle similar challenges in extending financial services to the large portion of the population that remains unbanked. While mobile money has brought much progress in the sector in Kenya, serious barriers remain in countries like Uganda where the mobile money services are not as pervasive and millions of people still struggle to save money, transact over long distances, access credit or achieve financial stability.


FSIP Uganda is a GBP14m fund backed by the UK’s Department for International Development (DFID). Watch this space for exciting news about our work in Uganda going forward.

Client Feedback

Client Feedback
FSD Kenya is a highly innovative programme that combines funds from multiple donors into a neutral platform for action. The program has been recognized for its ability to adapt quickly to the changing market, which has allowed it to achieve substantial impact with a relatively small budget through various partner-driven projects. As trustee, KPMG has been credited with providing the sound financial and risk management oversight that assures donors their money is safe and well-spent, thus creating space for cutting edge development work.



Financial Deepening and M4P: Lessons from Kenya and Rwanda

This paper looks at the M4P approach to financial inclusion, with evidence from Kenya and Rwanda.