APRM • SECOND COUNTRY REVIEW REPORT OF THE REPUBLIC OF KENYA Figure 8: GDP per capita (US Dollar) for Kenya, Tanzania and Uganda, 2011-2015 GDP per capita US Dollar 1600 1423 1400 1000 800 1257 1185 1200 1358 1013 697 690 633 600 927 893 798 712 886 627 607 400 200 0 2011 2012 2013 2014 2015 Year • Uganda Tanzania Kenya Kenya’s financial sector has shown resilience. Ongoing deepening financial inclusion, through banking mobile phone – the M-Pesa network of money transfers by mobile phone - has seen a rapid increase in financial inclusion and small business access to credit, which has fostered a more dynamic small and medium-sized enterprise sector. The reduced overall transaction cost that has arisen from the low-cost technology of mobile banking has had a positive impact on social welfare, as it has particularly helped the poor most. Farmers, for example, now benefit from schemes to acquire capital equipment that allow payment by mobile banking and various other services can be paid for via the same platform; Figure 9: GDP per capita (US Dollar) for Kenya, Tanzania and Uganda, 2011-2015 33.2 32.7 2013 2009 22.1 2006 15.0 0% 10% 15.0 4.3 20% Formal Prudental 0.8 4.2 7.8 25.4 27.2 31.4 33.3 8.1 30% 40% Formal Non-Prudental 39.3 50% 60% 70% Formal Registered 80% Informal 90% 100% Excluded Source: APRM, 2nd Kenya Self-Assessment Report, February 2015 • In addition, Kenyan banks have expanded their outreach in East Africa and are becoming dominant players in that market. In this regard, the Central Bank of Kenya has shown commitment to strengthening prudential and regulatory oversight of the banking industry; | 144 |