Kenya Tool Unlocks Credit for Millions Using Remittances

Millions of Kenyan families receive regular money from relatives working abroad, but banks have never counted those payments as real income when deciding who gets loans. That's about to change.

WapiPay, a Kenyan fintech company, just launched a credit scoring tool that analyzes remittance patterns and turns them into something banks can actually use. For the first time, steady money from the diaspora counts the same as a paycheck when families apply for loans.

The timing couldn't be better. Kenya received over $5 billion in remittances last year, making it one of the country's top sources of foreign currency. Yet families depending on that money have been locked out of mortgages, business loans, and other credit because traditional banks don't recognize overseas transfers as reliable income.

WapiPay's Remittance Credit Scorecard changes the equation. The tool plugs directly into banks' existing systems and analyzes how often money arrives, how much comes in, and how long the pattern has lasted. That data becomes a credit score that works just like traditional employment verification.

"For too long, the regularity of remittance inflows has been ignored by traditional credit algorithms," said Eddie Ndichu, who founded WapiPay with his brother Paul in 2019. "This scorecard gives lenders the data rails to safely extend credit to families supported by the diaspora."

The innovation flips traditional credit scoring on its head. Instead of focusing on negative behaviors like missed payments and defaults, it rewards positive patterns. Families receiving consistent support get recognized for what they've been doing right all along.

The Ripple Effect

Right now, about 80% of remittance money goes straight to basic needs like food, rent, healthcare, and school fees. Only 20% makes it into savings or investments, according to UN trade data.

If banks widely adopt this tool, millions of households could suddenly qualify for personal loans, small business credit, and asset financing. That shift could transform remittances from a monthly survival cushion into a foundation for building real wealth across generations.

The impact extends beyond individual families. Kenyan banks struggle with high default rates because so many people work informal jobs with unpredictable income. Remittances offer exactly what banks need: steady, reliable monthly payments that cross borders no matter what happens in local job markets.

For remittance recipients, the difference is profound. A family that's been receiving $200 monthly for three years from a relative in the United States now has proof of stable income. They can finally apply for that loan to expand a small shop, buy equipment, or invest in their children's education.

What started as a money transfer company is now building the infrastructure to help millions of families move from getting by to getting ahead.