Technology Adoption and Financial Inclusion among Youth Operated Businesses in Nairobi City County, Kenya
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Date
2024-09
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Kenyatta University
Abstract
Financial inclusion is the cornerstone of savings and investment initiatives among the
youth .When many people are financially included, they possess greater access to credit
from financial institutions and can create and expand investment opportunities. In addition,
the inclusion of youth in financial systems can improve access to financial education and
planning, which increases employment opportunities and ensures that previously
marginalized and alienated youth are reintegrated into the economy. The purpose of this
study was to evaluate the effect of financial technology and literacy on the financial
inclusion of youth owned businesses in Nairobi's central business district. Specifically, the
study aimed to determine the effect of mobile phone usage, internet usage, agency services,
and credit information sharing and test moderation effect of financial literacy. The study
was founded on the theories of asymmetry, agency, and financial growth. The researcher
targeted a large population of approximately 32100 youth operated business enterprises in
Nairobi County, Kenya. Slovin’s formulae was used to select 500 respondents aged
between 20 and 35 years, per the definition of youth by the Department of youth affairs.
The researcher employed a descriptive research methodology. Using open-ended
questionnaires, primary information was collected. The researcher conducted an initial
inquiry to evaluate the dependability of the research instrument with the objective of
determining the instrument's viability. The data analysis procedure was enhanced by
employing (SPSS) version 23.0. The findings were presented using diagrams, charts, and
tables. The research discovered that the utilization of mobile phones, access to the internet,
and the provision of agency services have a noteworthy impact on enhancing the financial
inclusion of young individuals. Conversely, the sharing of credit information does not
exhibit a substantial influence on the aforementioned outcome. Moreover, the mediating
impact of financial literacy was also statistically insignificant. The research findings
suggest that the achievement of financial inclusivity for enhancing the participation of
young individuals in economic frameworks is facilitated by the utilization of cellular
devices, the utilization of online technology, the utilization of services through
intermediaries, and the acquisition of financial literacy. Therefore, the formulation of
strategies aimed at enhancing financial inclusivity among the youth in Nairobi should
prioritize the enlargement of entry and amplification of financial technology solutions.
Description
Supervisors:
1.Salome Musau
2.Margaret Kosgei
A Thesis Report Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Science in Finance of Kenyatta University September, 2024