Digital Credits and Financial Inclusion among the Youth in Kenya

Abstract

Objective of the Study: This study sought to investigate the relationship between digital credits and financial inclusion among the youth in Kenya. In specific, the study used borrowing for basic needs and borrowing for personal needs as measures of digital credits. Research Methodology: The population of interest was the youth in Kenya focusing on public and private university students on the main campuses in Nairobi City County aged between 18 years and 35 years estimated at 84,848. This study sought to collect primary data using questionnaires for one year targeting the year 2020. The data collected were analyzed using both descriptive and inferential statistics. Results and Findings: The study found out digital credits have no effect on financial inclusion among the youth in Kenya. Emulated from the empirical results, the study recommends that policymakers and digital financial service providers should work to enhance the provision of digital credits as a result of which they can have a significant impact on financial inclusion among the youth in Kenya. Conclusion and Recommendation: Digital financial service providers should embrace transparency for a comprehensive decision-making process by the borrowers. Interest rate, security requirement, and repayment period should be clearly explained to the borrower in detail and any concerns clarified. Further, the government should educate the public on the use of digital credit to embrace entrepreneurship and investment to avoid defaulting payments, late repayment, and CRB listing.