Nobody imagines that in Africa, a continent so remote for us, crowdfunding would be practiced, because what would happen if we told you that Kenya is the leading country in crowdfunding in the region? Keep reading…

Before, a little geography: Kenya is located in East Africa and extends on both sides of the Equator. Bordered by South Sudan and Ethiopia in North, South with Tanzina, East with Somalia and the Indian Ocean and west with Uganda.

On its economy and social indicators, we can notice that the most important sub sectors are commerce, tele communications, the financial industry, the real estate industry and tourism. On the other hand, its Human Development Index ranks 146 out of 188, according to the UNDP

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Currently, Kenya is home and promoter of several start-ups, which provides something that is quite scarce in the region: networks that connect angel investors. The most interesting of all is that they have their own word to refer to collective financing – Harambee – which means in Swahili, the official language “everything contributes something” –

Crowdfunding in Kenya

According to a study by AlliedCrowds, Kenya raised more than one million dollars in crowdfunding being one of the few countries in the region that reached that figure in 2015.

It is also one of Internet leaders in the continent, the figures indicate that there are 64 users per 100 people, which allows many people to have access to create and collaborate in crowdfunding campaigns. [bctt tweet = “Around 64% of the Kenyan population has donated for civil causes.” username = “solidaridadla”]

It should be noted that the culture in Kenya is highlighted by the collaborative spirit. They are the third most generous country in the world. This generosity focuses on hospitals and social organizations.

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Apparently, crowdfunding has a bright future in the country and although it might seem logical that being a developing country is practiced more crowdfunding by donations, the reality is different. Most of the activities in Kenya (75%) are carried out through crowdlending, loan crowdfunding.

Rebuilding a country with crowdfunding

Like several African countries, Kenya has several recent history of violence and migration due to political and military conflicts. Fortunately, this situation has been restored little by little until it is a democratic and mediating country in some cases.

By having a little more political and social stability, it gives you the opportunity to advance in your human development. This is when you can take advantage of the benefits of crowdfunding. It is more to conclude that collective financing provides an opportunity to reduce poverty, as indicated by a report on crowdfunding for East Africa by the University of Cambridge.

This is because collective financing offers alternatives to those places where banking and traditional loans are inaccessible, which is why collaboration, micro loans and crowdfunding are encouraged.

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In the case of Kenya, microenterprises and informal employment account for 80% of the country’s employment, therefore crowdfunding helps the growth of these types of businesses, especially when the method of loans that is very popular in the country is included. .

Without a doubt, it is incredible all the benefits that crowdfunding offers for this country. Each region is a world that seeks different resources to improve its environment and Kenya is a nation that knows how to manifest that.

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We recommend that you read: Social Causes Funded With Crowdfunding

Kenya, growing thanks to crowdfunding