Globally, East Africa is celebrated as the birthplace of mobile money. Two decades later, the region is again setting the pace, this time in responsible financing. In 2024, Watu secured Bronze-level Client Protection Certification from MicroFinanza Rating (MFR) in Kenya, Uganda, and, most recently, Tanzania, making it one of the first institutions in the region to adopt these global standards.
This milestone signals that financial inclusion is maturing. It is no longer just about opening access, but about ensuring that access is responsible, sustainable, and protective of the people it serves. Certification is a third-party confirmation that principles such as transparency, fairness, and responsible lending are not abstract aspirations but operational realities.
Although MFR is not yet widely recognised across Africa, it is a respected international benchmark. Pursuing it early demonstrates leadership in setting the standard for what responsible finance should look like.
The need for this maturity is clear. Inclusion that fails to protect the people it serves can become a revolving door, offering access without lasting impact. Research indicates that many digital borrowers in East Africa face challenges with repayment.
The Mashariki Research and Policy Centre notes that the convenience of digital credit has fostered constant borrowing, debt cycling, and psychological strain, turning opportunity into entrapment for many households. Furthermore, CGAP (2023) reports that 83% of digital borrowers experience financial stress from repayment obligations. This underscores how easily digital credit can shift from a tool of empowerment to a marker of systemic desperation.
Responsible financing is the answer. It embodies the principle that the quality of a financial relationship matters as much as its reach. It is a commitment to transparent pricing, clear terms, fair treatment, data safety, and reliable recourse when things go wrong. It is neither charity nor public relations. It forms the backbone of a healthy financial ecosystem, where trust and repayment are built on the same foundation.
When lenders embrace client protection principles, they build confidence with regulators who seek stability, investors who prize sustainability, and customers who need reassurance that the system is on their side.
Watu’s recognition across three markets is proof that the region is moving from innovation to standards. Such milestones illustrate what the next phase of financial inclusion should look like. It is not only about how many people can access finance, but also how responsibly that access is delivered.
In practice, that means designing products that reflect real income flows, embedding financial literacy into customer engagement, and offering recourse mechanisms that are simple, fast, and fair. Responsible financing strengthens the entire ecosystem by reducing default risks, enhancing trust, and ensuring that financial products support resilience rather than vulnerability.
East Africa has already shown the world it can lead in bold financial innovation. The next challenge is ensuring those innovations mature into systems that protect dignity, build trust, and create lasting opportunity. The future of financial inclusion will not be measured only by access, but by responsible access. Watu’s certification across three markets shows that this shift is already underway and that East Africa is positioned to lead once again.
The writer is the general manager, EA at Watu.
