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Impact of digital currencies on economic development in Kenya

Conference Paper · November 2018

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 2018 ACBSP Region 8 Annual Conference Paris, France November 15- 17, 2018.
The Art of Developing Entrepreneurial Leaders.
The International Council of Business Schools and Programs (ACBSP Region 8)

P F
P
Nour Naboulsi
ISM International School of Management, Lebanon
[email protected]
Michael Neubert
ISM International School of Management, France
[email protected]
ABSTRACT
This paper aims at identifying and investigating how digital currency has had an impact on
the Kenyan economy. It aims to further study how using bitcoin can reduce the cost of
international funds transfers and reduce remittance fees subjected from other transfer
providers. The framework is then employed, via a case study, to examine the use of bitcoin
in Kenya using BitPesa as a platform and its affect reflecting on fostering growth on
the economy. Findings suggest that there are concerns about Bitcoin’s use including its
price volatility and unregulated legal framework put in place on the use of digital
currencies. The outcomes suggest that the use of BitPesa and bitcoin technology had some
impact on users understanding and adopting to the use of this technology and how it works.
The results prove that using BitPesa to transfer money has reduced the cost of transfer on
users. The results support the outcome of the findings that using modern day technology
can benefit society as a whole and attract outside investments into the country. Resulting in
a generation that seeks to further create a future full of opportunities and possibilities to
come.
Keywords: Bitcoin, Blockchain, money remittance, BitPesa, cryptocurrency, Africa, Kenya,
innovation, venture capital, digital currency, M-Pesa

I
This paper aspires to understand the impact of digital currencies on e-
commerce landscape in Kenya. It aims to determine if the use of Bitcoins can help decrease
the cost of international fund transfers and aims to understand the challenges, advantages
and obstacles that occurs in the adoption of Bitcoin as a digital currency in Kenya,
using BitPesa’s platform. This study aims to effectively determine the legal framework for
regulating Bitcoin in Kenya.
The first digital money service in Kenya is BitPesa, which is a digital payment service that
allows people to send money to Kenya by converting Kenyan shillings to Bitcoins and

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therefore forwarding the money through a mobile service to recipients in Kenya

(SmartKenya, 2014). BitPesa is based in Nairobi, Kenya operating in the money transfer
market using Bitcoin as a mean to reduce the cost, the speed, and the convenience of
international money transfer. BitPesa was founded by Mrs. Elizabeth Rosiello and is an
example of growing female entrepreneurship in the African high-tech sector (Jones, Maas,
Dobson, Newbery, Agyapong, & Matlay, 2018). The use of digital currencies is a relatively
new concept specifically in the African continent. The research aims to understand the legal
framework on the use of Bitcoin and achieve means of which the Kenyan government can
regulate the use of digital currencies in Kenya.
This study has been based partly on the work of Hayek (2013), one of the first names to
cover Bitcoin in his research paper “Denationalisation of Money”. In his paper, he discusses
how essential it is to eliminate the governments’ perspective over the issuance of money. In
his research, he suggests that private banks should be able to issue “non-interest-bearing
certificates based on their own registered trademarks” (Hayek, 2013). He suggests that
further studies need to be made for the free movement of money, however, he fails to address
the means of transferring funds. Therefore, it is suggested to address it through qualitative
research methods, such as a case study research in order to close the gap in this literature.
Following the introduction, this paper offers a perspective that identifies blockchain
and the technologies that derives from its use, as well as it explains its outstanding potentials.
The first chapter covers blockchain’s achievements and elaborates on its capability to change
peer-to-peer transactions, while eliminating intermediaries. The second chapter envisions the
future aspects of its use to the economy while including its effective mean as a distributed
ledger, along with the changes that derive from it and the challenges brought forward that
would need to be considered. This includes the fear of being hacked and any fraudulent
transaction that may be seen in the use of this technology (Njuguna, 2014). The third chapter
follows the benefits brought forward from VC investments to Africa and specifically to
Kenya with the use of this technology, and while its proper implementation can be of benefit
can arise innovations that foster growth to the African economy and bring it forward in the
use of technology. This paper presents literature about blockchain technology and its impact
on the African economy. The results of this case study are seen in the fourth chapter that
answers both research questions put in place. The final chapter covers the conclusions
brought forward from the study and offers some means of implementation for future research.

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This chapter shows the results and literature review on digital currency, along with the
factors that affect Bitcoin’s adoption in Kenya as a digital currency, while reviewing any
applicable theory related to this study. Covering previous research in this field provides
beneficial direction in the construction of data collection instruments and the analysis
required to be made on the data collected.
Following the work of Hayek (2013), one of the first names to cover Bitcoin in his
research paper “Denationalisation of Money”, in which he focuses on eliminating the
governments’ perspective over the issuance of money. In his research, he suggests that
private banks should be able to issue “non-interest-bearing certificates based on their own
registered trademarks” (Hayek, 2013). Hayek (2013), argued that such certificates or
currencies should be open to competition and be traded at variable exchange rates. The
theoretical roots of Bitcoin can be found in the Austrian school of economics and it follows a
criticism of the current fiat money system along with the interferences made by governments
which results in “aggravated business cycles and massive inflation” (Ford, 2013; Hayek,
2013; Graf, 2013).

Exhibit 1: Theoretical Framework

Source: authors

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The proposed research is exploratory in nature since in the Kenyan market, Bitcoin is
still considered a new concept. Moreover, many scholars have covered Bitcoin and how it
works, which in the following section is covered through empirical studies relevant to the
proposed research. Bitcoin transactions are noted to have no third-party intermediary to
validate since this is done by peer-to-peer bitcoin community (Elwell, 2013). Furthermore,
digital currencies are known for not being issued from a central bank, nor being stored in a
commercial bank, or transferred from a credit card company. On the contrary, users interact
directly with each other and anonymously without third-party interference (Nakamoto, 2009).
Due to this, Elwell (2013) concluded that Bitcoin transactions are claimed less
expensive for customers that use the traditional payment systems. Moreover, Bitcoin sales are
non-reversible which in return removes charge backs which merchants consider costly
(Elwell, 2013). There is sufficient subjective evidence that Bitcoin reduces the cost of
international funds transfer, but there exists no comprehensive data on the size of Bitcoin’s
gain. This research paper suggests connecting the gap and discovering the advantage of the
use of Bitcoin in Kenya to Kenyans that use it to receive and/or send money out of the
country (Greeley, 2014).
The first digital money service in Kenya is BitPesa, which is a digital payment service
that allows people to send money to Kenya by converting Kenyan shillings to Bitcoins and
therefore forwarding the money through a mobile service to recipients in Kenya
(SmartKenya, 2014). BitPesa is based in Nairobi, Kenya operating in the money transfer
market using Bitcoin as a disruptive technological innovation to reduce the cost of
international money transfer and to increase its speed. Initially, BitPesa’s primary focus was
on Kenya remittances from the UK with the goal of expanding across East Africa and the
African continent as a whole (SmartKenya, 2014). The case study firm BitPesa was chosen,
because it demonstrates how disruptive financial innovations (here: Bitcoin) are applied to
Africa-specific use cases (here: remittances) using a born-global or lean global start-up
business model (Neubert, 2017; 2018).
The Venture Capital (VC) and Private Equity (PE) industry in Africa has attracted a
sizeable number of investors, and with the continuous rise of activity in this field (EAVCA
and KPMG, 2015). The ongoing strive for economic growth of the African continent has
generated a new interest in its economy other than just being a recipient for aid. This has
been driven partly from the positive impact investments has had on Africa (Roxburgh et al.
2010).

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When considering the advantages of VC’s in Kenya, there is a positive effect on

fostering growth for the advancement of Kenya’s economy. Kenya is considered a base for
mobile money transfer invention with the ongoing success of M-Pesa, as a set but still unique
example for the rest of the African continent (Yermack, 2018). M-Pesa is mobile phone
based money transfer that allows users to transfer, deposit, withdraw and pay using their
mobile device (M-Pesa, 2018). The company boomed and flourished due to the
underdevelopment of traditional banking infrastructure in Kenya (Rouse & Verhoef, 2017), a
highly developed smart and mobile phone infrastructure (Ouma, Odongo, & Were, 2017),
and a market-led approach to financial inclusion and regulation (Burns, 2018; Nair &
Emozozo, 2018). With the majority of Kenyans now using the online market to buy and sell
goods and services, this developed growth of many e-commerce platforms, which gave
Bitcoin the chance to thrive in the market (Braendgaard, 2018; Greeley, 2014).

Figure 1: Mobile phone impact by regions

Source: Disrupt Africa (2014)

With all the challenges that Africa faces, many can be solved with the adoption of
cryptocurrencies such as Bitcoin (Juma et al., 2018). Previously, the Nigerian government
once put constraints on access to the US Dollar in Nigeria, which left many in financial crisis
and instability (Hain & Jurowetzki, 2017). Another example is the recent unstable nature of
the Zimbabwean economy, which left many to seek alternative means to store their money.
Both of these situations in Nigeria and Zimbabwe have led many Africans to Bitcoin and

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other cryptocurrencies. In general, this is due to the mismanagement and chaotic structure of
the banking system in many African nations, as well as the difficulty of transferring funds
from one country to another. This attracted many Africans to Bitcoin, for the feasibility to
send funds across borders at ease. Countries such as Kenya, Nigeria, and Tanzania thrived in
seeing a widespread adoption of digital currencies (Jackson, 2018). Specifically, companies
such as BitPesa seem to thrive in Africa, others consider that M-Pesa has been responsible in
bringing 2% of Kenyan households out of poverty (VC4Africa, 2015). This is why
cryptocurrencies are viewed now as bringing financial health to unbanked Africans (Kazan et
al., 2016).
The research paper aims at finding out the impact of digital currencies on the Kenyan
economy. The proposed research has led to the following questions:
1) What are the means to determine if the use of Bitcoins can reduce the cost of
international fund transfers?
2) What are the advantages of Africa in adapting to the use of digital currencies that
attract VC investments?

R
The research methodology is based on the purpose of this study to answer the research
questions. This study uses a single case study research design. This research methodology is
used to understand new, innovative, and more complex issues within the context of real life
by analyzing a small number of events or conditions.
This study uses a purposive sampling method. Focusing on the Kenyan market as a
leader in Africa for fostering innovation and growth. Kenya is considered a central hub for
the African continent, attracting VC’s from all over to invest in its digital system. From
leaders such as M-Pesa as a mobile money transfer to BitPesa using bitcoins for international
money transfer while reducing the cost of remittance fees.
The data for this study was collected in June 2018. The data collection is based on
different sources of evidence. It uses a triangulation concept to guarantee that different
sources of evidence like for example website content, press articles, and case studies were
used. This facilitates the validation of data through cross verification combining several
methods to be used in the same phenomenon studied.
The data analysis followed a logical sequence. Generally, a data analysis starts with the
analysis of a single source, followed by a cross comparison of the results obtained from the

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different sources of evidence to identify differences and similarities and the development of
themes, and finally a theoretical and literal replication using a pattern-matching approach.
The main goal of this approach is to increase the possibility to transfer and generalize the
findings to other contexts, even though this is the limitation of qualitative research method,
especially a single-case study research methodology.

The results of this case study are presented in this chapter to answer both research
questions individually.
Answer to research questions 1
The analysis of the data collected using qualitative research and theoretical sampling
showing findings about the data collected to reveal the outcome of the findings. The findings
and results answer the first research question:
What are the means to determine if the use of Bitcoins can reduce the cost of
international fund transfers?
Theme 1: BitPesa used a qualitative analysis of quantitative data to determine the
attractiveness of the Kenyan market.
Following the analysis of BitPesa to venture in Kenya, they used several methods.
Qualitative analysis was used on quantitative data (Neubert, 2018); which includes data
pertaining the cost of international money transfers using bitcoin in Kenya. When BitPesa
first ventured in Kenya, their study of the Kenyan market covered to determine how the cost
of Bitcoin transactions compared with Western Union and PayPal will aid Kenyans
(Moosajee, 2016). A further study was analyzing the content conducted on the qualitative
data, the challenges that are faced while adapting to Bitcoin as a currency, as well as data
relating to the legal framework that regulates the use of digital currencies in Kenya.
Theme 2: The use of cryptocurrencies reduces remittance fees by linking remitters with
remittees.
BitPesa is seen as a disruptive financial innovation aiming at fostering growth in
Africa. By creating value by linking remitters with remittees, which in return eliminates the
pricing model set from traditional payment remittance such as Western Union or PayPal. In
order for BitPesa to achieve its competitive pricing structure, they use Bitcoins as an
affordable alternative to payments transferred. BitPesa delivers its value to customers by
using its technology platform, which enables remitters to send bitcoins to a bitcoin wallet

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hosted on BitPesa (Ndemo & Weiss, 2017). Then BitPesa converts these bitcoins into fiat
money, and then the bitcoins get transferred to a mobile wallet account such as M-Pesa. In
return, this requires BitPesa to cooperate with several network stakeholders, where bitcoin
exchanges are sold, banks to transfer fiat money from and to Kenya, and the service of
telecommunication that finalizes the payment (Kazan et al., 2016).
In accordance to the analysis, which can be seen in the graph below, the cost of
sending 662 USD from the UK to Kenya while using PayPal comes at the highest charge of
36 USD, an average of 5.4% of the amount wired. Second highest was through using Western
Union, having the cost of sending 662 USD at 26 USD, which is equivalent of 3.98% of the
amount transferred. Bitcoin on the other hand came lowest by sending 662 USD at 7.1 USD,
which is equivalent to 1% of the amount transferred. According to this, it comes cheapest to
send funds from the UK to Kenya while using BitPesa (Njuguna, 2014).

Figure 2: Analysis of cost of transferring 500 pounds (662 USD current conversion rate- July
2018) using Western Union, Bitcoin and PayPal.

Source: author based on Njuguna (2014)

The analysis proved that BitPesa seems capable of eliminating high transaction costs of
remittance fees by offering competitive fees through a convenient and cheaper way of

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sending money. The research revealed that substantial savings are even encountered for small
transactions, that at times micro remittances that range up to 13.2 USD can cost as much as
the amount being sent on Western Union or PayPal. Elwell (2013), suggested in his research
and discovered the reduction on the cost of international funds transfer, however, he failed to
compare it with international money transfer services.
Theme 3: In Africa, innovative technologies like cryptocurrencies need to overcome
growth challenges like illiteracy to become successful.
The research discovered that the challenge faced by BitPesa and their use of bitcoin
currency is having users adopt to its use, those of which found it challenging to understand
the concept of bitcoin and how it can significantly decrease the cost of sending funds
(SmartKenya, 2014). One of the many issues that were explored according to West (2014),
was the illiteracy of some Africans in rural areas that depended on money being transferred
from family members working and living abroad. Another challenge that BitPesa faced was
the volatility of Bitcoin, since its value is linked to its demand, which in return creates a
loophole for its price to go up.
Venture Capitalist are investing in digital currency businesses, and the number have had
a steady high. The advantage that bitcoin has is that it has transformed financial markets by
serving as a catalyst for capital formation. This can be seen in underserved regions in Africa,
which is in need of banking facilities with access to capital and technology such as
blockchain in order to become a base for its growth in the movement of currencies in the
continent. (Juma et al.; 2018).
The answer to research question one is that cryptocurrencies are an innovative
technology, which might disrupt the African payment industry due lower cost and faster
transactions, if they are able to adapt to local users and to carefully select the most attractive
markets.

Answer to research questions 2

The analysis of the data collected using qualitative research and theoretical sampling
showing findings about the data collected to reveal the outcome of the findings. The findings
and results answer the second research question:
What are the advantages of Africa in adapting to the use of bitcoin that attract VC
investments?

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Theme 4: Kenya provides the infrastructure and the necessary framework conditions for
disruptive financial innovations to succeed.
Digital currencies are considered to have no national boundaries (Christensen, 2018).
In terms of Kenya trading and succeeding in digital currencies, it may require the country to
cover international solutions and aim for international partners. For further VC investments to
happen in Kenya, they must look at the international policy makers such as the European
Union and International Monetary Fund for further direction on the use of digital currencies.
In order to protect Kenyan consumers, and considering the fact that digital currencies are
volatile, it is essential to aid Kenyans while directing them on its use (Hain & Jurowetzki,
2017).

Table 1- Guidelines for using Bitcoin (Wales, 2015)

1. Who can use Bitcoins? 4. Transactions (sending and receiving)
Anyone can use Bitcoins to pay for goods and Personal computers, mobile devices or a web
services online- there are plenty of outlets that will application is used to facilitate sending and
take them, both online and in the real world. Bitcoins receiving, using a Bitcoin wallet.
are held in a ‘digital wallet’, either on your own
machine or via an online provider, and transferred to
the wallet of your payee. But proceed carefully, as
with any investment, there are risks attached.
2. The first way to gain access to Bitcoin. 5. Small businesses like to accept payment in
Be a Bitcoin developer: compete to win Bitcoins via Bitcoins.
“mining”, i.e., competing with other computers to Why? They get paid straightway, instead of having
solve algorithms. Winners of these challenges are to wait for funds to clear via PayPal or other online
rewarded payment in Bitcoin transaction fees or payment methods
newly created Bitcoins
3. The second way to gain access to Bitcoin 6. Consumers (and businesses) like them too.
Setup Bitcoin wallet and exchange fiat currency for Why? Because there’s no tax to pay on transaction
products and services and investors see Bitcoin as something of a safe
haven, similar to gold. Generally, transaction fees are
lower than 2-3% fees imposed by credit card
processors.

Source: Wales Capital, a leading strategy, risk management, and regulatory compliance
consulting firm.

If one is to compare Africa as a whole to other developed countries, evidence proves

that activities of VCs with proper institutional setups, creates and promotes growth activities
(Samila & Sorenson, 2011), they also add value-added support which permits innovative
services and products to be quickly brought to market. VC’s add value to the invested
companies with managerial support, which they provide in a structured way to their
developed network of firms and business services (Baum & Silverman, 2004). Local
activities from international VC’s provide an additional inflow of capital as well as

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technological, business, and financial expertise, which in return offers varied opportunities
for growth to the market at hand (Yermack, 2017).
Kenya is considered a leader and at the forefront in three critical areas. First of all, it
has a conscious and dedicated program to develop the infrastructure in the country. Secondly,
they focus on innovation, specifically mobile money and crowdsourcing platforms. Lastly,
Kenya is considered a frontrunner compared to other African countries at developing tech
incubators and accelerator models for the whole African continent (Ndemo & Weiss, 2017).
Theme 5: Disruptive technological innovations can lead to sustainable economic growth
and social change in African countries.
Digitally, the KINGS economies, which are Kenya, Ivory Coast, Nigeria, Ghana, and
South Africa, have been leading the African continent by establishing a strong base through
its broadband penetration and innovation in developing entrepreneurial investments. Ndemo
& Weiss (2017), describe their unique characteristics in “economic growth, entrepreneurial
ecosystems, vibrant telecoms, tech infrastructure, and supportive policies— distinguish the
KINGS economies from others on the continent” (p. 61).
The KINGS economies are leading their way in tech hubs, incubators, and accelerators
in which reflects on their economies’ advancement and innovation, as well as their
entrepreneurial activities. This proves that when regulators on mobile transactions eliminate
restrictions, this reflects on a countries innovation. Due to that the KINGS economies have
developed digitally due to their pro-innovation policies, an example would be M-PESA,
which was originally launched with minimal restrictions from Kenya’s Central Bank (Ndemo
& Weiss, 2017).

Table 2: Profile of KINGS countries

Mobile Internet
Country Population GDP Growth (%) Subscriber Subscriber
Kenya 44.35 M 5.7 32.3 M 16.2 M
Ivory Coast 20.32 M 8.7 17.9 M 5.6 M
Nigeria 173.6 M 5.4 133.2 M 70.3 M
Ghana 25.9 M 7.1 29.53 M 14.62 M
South Africa 52.98 M 1.9 59.5 M 21.73 M
Source: Digital Kenya (2017)
VC funding in the technology sector in Kenya has been at the forefront. The VC
funds raised by African tech start-ups in 2017 totaled USD 560 Million, compared to USD

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366.8 Million in 2016. Leading markets are South Africa, Kenya and Nigeria, which alone
accumulated 76% of the total funding. The geographic distribution remains focused on the
top markets with a potential expansion for the future (VC4Africa, 2017).

Figure 3- Total Funding per country in USD Million

Source: Quartz Africa (2017)

Fostering growth strategically is what BitPesa accomplished recently. They now handle
trade volumes of 10 million USD a month compared to 1 million USD back in 2016. They
have now expanded its operations and are found in the UK, Kenya, Senegal, Uganda,
Tanzania, Nigeria, Mozambique, Spain and Luxembourg. They currently employ 50
employees in Kenya and are set to launch in South Africa by the end of 2018. Elizabeth
Rossiello, CEO of BitPesa asserts that they transformed the African remittance industry while
fostering growth and positive impact across the African continent. “BitPesa was the first
company in the world to establish a market between African currencies and digital
currencies. We lowered the cost of international payments by 75% and reduced the time to
settle between currencies from 12 days to less than 2 hours” (Haig, 2017a).
Africa offers a unique opportunity in cryptocurrencies and bitcoin according to
Rossiello. She states that “the lack of economic development and weak juridical apparatus
associated with Africa begs for the types of services that bitcoin and cryptocurrency can
offer” (Haig, 2017a). She goes on mentioning the changing attitudes held toward bitcoin by
major international financial organizations and the recent change in its use perspective. She

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BitPesa uses Pesa as a digital to fiat exchange platform for the use of bitcoins

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A market leader since 2013, BitPesa have processed more than 150 million USD in
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When considering the advantages of digital currencies in Africa, and how it can aid in
its agricultural sector that currently incurs exorbitant fees of sending and receiving
money internationally as well as exchange rates from different currencies in the region.
Considering the fact that 50% of Africa’s economic activity is through its export industry
of agricultural goods, and with bypassing the banking sector this would support
African farmers and businesses to have higher profits (Kazeem, 2018). More than 60
billion USD is lost from the African economy because of remittance fees, blockchain
technology and bitcoin are to play a significant change in African’s economy (Haig, 2017b).
The answer to research question two is that Kenya and the other KINGS economies
need to invest in the required infrastructure and the necessary framework conditions to help
disruptive financial innovations and investors like VCs to succeed to facilitate
sustainable economic growth and social change. The born-global respectively lean
global start-up business models of BitPesa and BitMari are excellent examples of
adapting disruptive financial innovations to African market needs successfully and to
make the daily life of African users one step better.

This paper shows how the use of Bitcoin reduces the cost, the convenience, the security,
and the transfer time of international fund transfers when compared to traditional funds
transfer services such as Western Union and PayPal. As compared to any other technology
when newly established, Bitcoin faces challenges on adapting to its technology. With change
comes resistance, therefore investing in training people to use this technology in Kenya is
essential in order for them to be informed on how much remittance fees they can save
through this technology. There needs to be considerable input by regulation agencies and
governments to assess the use of Bitcoin and implement market-led or hands-off (Burns,
8 8

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In comparison to other African economies, Kenya stands out as an example to a

thriving and emerging sector in technology. Therefore, it serves the rest of African economies
to draw conclusions that are applicable beyond Kenya’s value. Weiss (2017) described
Kenya’s digital economy, as a representation of a generation of entrepreneurs that are
achieving fundamental change for generations ahead. Benefiting every citizen and
organization in Africa, by applying the advantage that technology brings to society and its
people. Kenyan’s are now viewed as a generation that aims to create and foster growth in its
economy by creating a future full of opportunities for years to come (Weiss, 2017).
Based on the theoretical framework of Hayek (2013), the findings of this study suggest
how cryptocurrencies like Bitcoin are leading the way to a frictionless monetary system.
BitPesa is strategically positioned to capitalize on the positive change occuring due to
finance and technology. As a start-up, BitPesa used bitcoins as a low remittance mean unlike
Western Union and PayPal who require high transaction fees to transfer money across
borders. Lowering the remittance fees using BitPesa, proves as a win for many, as the
reduction in transaction fees places more money in the pockets of locals. This in return
creates new businesses and jobs, while raising a few from poverty. As these examples
show, “a new economic revolution has the potential to disrupt social and capital
norms” (Yermack, 2017).
The first conclusion is that this change in the Kenyan economy will transform every
aspect of life due to the interrelated nature of the ecosystem, since amplified activity in
one part of the ecosystem creates an increase in activity in other fields. Innovators
and entrepreneurs in an economy can enrich society while transforming the world by
encouraging the core values of societies from democracy, capital formation, sustainability
and equality (Kazeem, 2018; Miller, 2015). The second conclusion is that BitPesa
reduced the cost of international fund transfer to Kenya. This comparison revealed that
significant savings have aided the boost in the Kenyan economy.
Thirdly, the research showed that one of the most feared challenges comes at having
users understand bitcoin as a currency and how to use it. Awareness and training needs to be

ACBSP Region 8 382 The Art of Develpoing Entrepreneurial Leaders

 2018 ACBSP Region 8 Annual Conference Paris, France November 15- 17, 2018.
The Art of Developing Entrepreneurial Leaders.
The International Council of Business Schools and Programs (ACBSP Region 8)

Africa’s future lays in the use of digital technology while taking advantage of
its growing demographic of young entrepreneurs, eliminating political affairs that
negatively influence the economy, and all the technological systems that can be of an
advantage to its growth (Jackson, 2015). All this combined can create more innovations that
foster growth to the Kenyan economy.
The results are relevant for researchers, policy makers, and banks and
governmental agencies involved in regulation, and Venture Capital investments. The
suggested findings offer to find solutions that may involve Kenya working with
international partners. Central banks can oversee traditional payment transactions processed
by banks and other authorized or chartered financial institutions. Kenya might need to
outsource international policy makers like the European Union and International Monetary
Fund for suggestions and directions on the treatment of digital currencies. Policy makers
might use the findings of this study to derive regulations directed at fostering growth
in the African economy, which aids in promoting disruptive innovations in finance for
sustainable growth.
This single-case study research design has several limitations in scope and size that
suggests new ideas for future research. Throughout this qualitative study, it would not be
possible to generalize the findings. Therefore, future scholars in this field should include
quantitative data that can ultimately reach concrete outcomes and in return provide a clearer
scope of understanding. A mean to foresee this by replicating with more case-study firms
from different African countries and maybe focus on other innovations such as accelerators
or crowdfunding.

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The Art of Developing Entrepreneurial Leaders.
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