Analysis Into the Evolution of Impact Investing and Crowdfunding in The Fintech Landscape in Kenya: A Critical Analysis

Abstract

Impact-driven crowdfunding is still a new and evolving field. In fact, the crowdfunding market of developing economies in Africa currently account for less than one percent of global investments. Research is essential to untangling the interaction and developing an understanding of how these innovative funding mechanisms complement each other.  This paper conducted a systematic review of literature on the evolution of both impact investing and crowdfunding within the Fintech space in Kenya. Various studies were reviewed within the thematical areas and insights drawn that can be critical to the expansion of this nascent investment vehicles in the Kenyan market. The study concludes that impact investing faces a significant number of challenges that can be addressed through concerted efforts to educate the public and increase their acceptance of innovative financing mechanisms. The study further concludes that favorable regulatory policies such as regulatory sandboxes would be important steps to guide the development of alternative financing platforms in the fintech sector. These platforms are instrumental to the realization of sustainable development goals according to the literature review and as such have to be given more relaxed policies to entice interested players.