FSD Kenya impact assessment

The objective of the impact assessment is to conduct a rapid analysis of the FSD-Kenya programme over four years (2005-2008) of operation against the programme theory and objectives. No previous impact assessment has been done for FSD's market development based systemic approaches and the study also provides recommendations for future impact assessments of the programme.

Main findings

• The key findings show that FSD has contributed to the creation of an enabling policy and regulatory environment at the macro level, and has facilitated capacity building of support services and retail service providers at the meso and micro level
• A shift to a more client oriented financial market with a focus on poorer clients is noticed yet measuring impact on the incomes and vulnerability of the poor is difficult without more information on the poverty profile of who is able to access services
• Establishing a link between the broad programme theory and the goal of the programme is noted to be challenging and the study highlights that both the direct and indirect effects (crowding-in) of a market systems approach are important in impact assessment.

Intervention description

FSD Kenya uses a systemic market development approach to support the financial sector and significantly expand access to lower income households and small enterprises. It seeks to stimulate change across the three levels of the financial market system, i.e., policy and regulatory (macro), sector support services (meso) and retail capacity (micro). The core themes / areas of focus include core financial system, rural finance and finance for growth with the ultimate aim of improving livelihoods for poor Kenyans.

Evidence methodology

• The impact assessment is based on semi-structured interviews with key partners, stakeholders and financial service users in addition to document review.
• The assessment establishes the FSD programme theory and examines impact pathways. A triangulation process, including a review of FinAccess survey data and respondent interviews, is used to substantiate the findings.
• Discussion of hypothesised counter factual scenarios with key informants was the main basis of attributing effects to the FSD. 

Useful for:

Other financial sector development projects; impact assessment challenges of systemic market development approaches