Financial Inclusion and Women Economic Empowerment in Murang’a County, Kenya
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Date
2024-06
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Kenyatta University
Abstract
In Kenya, women represent a significant part of the economy, yet they face numerous barriers that limit their financial participation. In many communities, financial literacy for women is low, which impacts their confidence to engage with banks or financial institutions. Many financial institutions lack tailored products for women. For instance, access to credit is often limited for women entrepreneurs, who may not have sufficient collateral or a formal income stream and many women are simply unaware of the financial services available to them. Therefore, this study investigated the impact of financial inclusion on the economic empowerment of women, specifically within the context of Murang’a County, Kenya. The specific objectives of the study were to establish the influence of banking penetration, availability of banking services and banking usage on women economic empowerment in Kenya. The research was anchored in the financial intermediation theory. A descriptive research design was utilized, focusing on ten women's groups in Murang’a County, which together comprised a total of 474 members. Thus, the target population for the study was 474 individuals. A stratified sampling method was employed. Participants were chosen using a simple random sampling technique, resulting in a sample size of 217 individuals. Data collection was primarily conducted through questionnaires. A pilot study was carried out with 22 participants from a women's group in Kiambu County. The quantitative data were analyzed descriptively, employing measures such as mean and standard deviation, while inferential analysis was used to examine the relationships among the variables. The findings were presented in tables and figures. The study concluded that there exists a positive and significant relationship between banking penetration (β= 0.2150, p= 0.002), the availability of banking services (β= 0.3678, p= 0.002), and banking usage (β= 0.3415, p= 0.001) with women's economic empowerment in Kenya. The investigation concludes that enhanced banking penetration in Kenya empowers women by providing improved opportunities for saving, investing, and obtaining credit, facilitating the initiation or expansion of their enterprises, thus resulting in heightened economic autonomy and resilience. The provision of banking facilities allows women to save funds, access credit, and engage in investments that support the establishment or growth of their businesses, enhancing their earnings and ultimately realizing financial autonomy. Engaging with banking services grants women in Kenya access to an array of financial options like savings accounts, loans, and insurance, allowing them to plan for the future and effectively manage their finances. The study suggests that banks ought to customize their financial products and services to align with the unique needs and preferences of women. It is recommended that banks concentrate on augmenting the network of bank branches and ATMs in these regions to facilitate convenient access to banking services for women, eliminating the need for extensive travel. Furthermore, banks are encouraged to offer specialized financial literacy programs and training initiatives tailored specifically for women, aimed at enhancing their comprehension of the advantages associated with utilizing banking services, including savings accounts, loans, and insurance, and how these services can contribute to the attainment of their financial objectives.
Description
A Research Project Submitted to the School of Law, Arts and Social Sciences in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Arts in Public Policy and Administration of Kenyatta University. June, 2024
supervisor
Jane Gakenia Njoroge