Kenya crossed a major milestone in 2025, with remittance inflows surpassing $5 billion (KES 649 billion) for the first time—making it one of the country’s top sources of foreign exchange.
Yet, despite the scale and consistency of these inflows, they are largely ignored in formal credit assessments.
According to the United Nations Conference on Trade and Development (UNCTAD), about 80% of remittances are spent on immediate consumption—food, rent, healthcare, and school fees—while only 20% is directed toward savings or investment.
WapiPay’s founders believe that framing remittances purely as consumption capital overlooks their deeper financial signal: stability.
“For too long, the regularity of remittance inflows has been ignored by traditional credit algorithms,” Eddie Ndichu told TechCabal on the sidelines of the Africa Tech Summit in Nairobi. “This scorecard gives lenders the data rails to safely extend credit to families supported by the diaspora. We’re not just moving money; we’re building a foundation for wealth creation.”
A Shift Toward Positive Credit Behaviour
Founded in 2019 by Eddie Ndichu and Paul Ndichu as a cross-border payments and foreign exchange provider between Africa and Asia, WapiPay is now positioning itself at the intersection of remittances and credit innovation.
Its AI-enabled Remittance Credit Scorecard analyses transaction histories—including payment frequency, transfer size, and long-term stability—to generate a credit rating that financial institutions can embed into their loan systems via a single API integration.
Unlike conventional credit scoring models that rely heavily on negative data—defaults, missed payments, or outstanding debt—WapiPay’s system is built around positive financial behaviour. Consistent remittance inflows are treated as proof of reliable income support.
If adopted at scale, the model could enable remittance beneficiaries to qualify for:
- Personal loans
- Small business financing
- Asset-backed lending
- Education and home improvement credit
This is particularly significant in Kenya’s lending environment, where banks continue to face high default risks due to income volatility and the predominance of informal employment.
By contrast, diaspora-backed households often receive predictable monthly transfers that have historically gone unrecognised by credit bureaus and lenders.
Diaspora Capital as Development Infrastructure
Beyond individual households, the initiative signals a broader shift in how African economies might leverage diaspora capital.
Remittances have long outpaced foreign direct investment (FDI) in several African countries. Yet, their integration into formal financial systems remains limited. Most are treated as short-term consumption support rather than long-term wealth-building capital.
By formalising remittance data within lending systems, WapiPay is effectively attempting to convert diaspora flows into credit infrastructure—embedding them within the country’s broader financial architecture.
The model could also influence regional markets beyond Kenya, where similar remittance patterns exist but remain underutilised for credit expansion.
A Strategic Pivot for WapiPay
For WapiPay, the launch marks a strategic evolution from payments facilitator to financial data infrastructure provider.
The company’s core expertise in digitising cross-border flows between Africa and Asia gives it direct access to remittance transaction patterns—data that can now be repurposed into financial intelligence for lenders.
Delivered through a single API integration, the Remittance Credit Scorecard reduces friction for banks and SACCOs seeking to modernise their credit assessment frameworks without overhauling legacy systems.
The move also reflects a growing trend across African fintech: leveraging transactional data—not just lending capital—to expand financial inclusion.
The Bigger Question
If Kenya’s $5 billion annual remittance inflows can be systematically embedded into credit scoring systems, it could redefine how diaspora capital is perceived—not merely as foreign exchange support, but as a stabilising asset base for household wealth creation.
For lenders struggling with risk visibility, and households struggling with formal credit access, the experiment may prove transformative.
WapiPay’s bet is simple: remittances are not just transfers. They are trust signals.
If the market agrees, Kenya’s diaspora money could soon become collateral for opportunity.