Digital Credit Access and Growth of Micro, Small and Medium Enterprises in Uasin Gishu County, Kenya
| dc.contributor.author | Bwire, David Joseph | |
| dc.date.accessioned | 2026-02-05T11:38:03Z | |
| dc.date.available | 2026-02-05T11:38:03Z | |
| dc.date.issued | 2025-11 | |
| dc.description | Article | |
| dc.description.abstract | A significant challenge faced by Kenya's 7.4 million micro, small, and medium enterprises (MSMEs) is the inadequate access to financial services, especially fintech platforms. These platforms are essential as they facilitate entry into various marketplaces, provide secure payment methods, and offer affordable financing options. The primary problem addressed is the slow growth and high failure rate of MSMEs due to financial constraints, which digital credit is positioned to alleviate. The study sought to examine the effect of digital credit access on the growth of MSMEs operating within the environs of Uasin Gishu County in Kenya. The specific objectives included assessing how the accessibility of digital credit, its cost, the availability of information, and regulatory frameworks influence the growth of small and medium-sized enterprises. These four variables were justified based on theoretical and empirical gaps in the literature regarding the determinants of digital financial services uptake and their impact on firm growth. The accessibility of digital credit was specifically assessed using metrics such as simplified application procedures, rapid disbursement, flexible loan limits, and overall ease of navigation. The study was guided by theories such as Task-Technology Fit, Micro Lending Rates, the Financial Growth Life Cycle, and the Behavioural Theory of the Firm. An explanatory research design was employed, targeting a population of 700 small and medium-sized enterprises in Uasin Gishu County, with a sample of 121 top-level managers and owners selected through simple and stratified random sampling. Primary data were collected via semi-structured questionnaires. The reliability and validity findings served to refine the research instrument prior to its acquisition. Statistical analysis, encompassing descriptive and inferential methods, yielded frequency tables and measures of central tendency. The findings revealed that the four predictor variables of digital credit had a positive and significant effect on the expansion of MSMEs in Uasin Gishu County, Kenya. The results also revealed a significant negative correlation between the costs of digital credit and the growth of MSMEs in Uasin Gishu County, Kenya. The study concluded that the growth of MSMEs in Uasin Gishu County, Kenya is significantly dependent on the availability of information, ease of access of digital credit, and digital credit regulation. The study recommends lowering interest rates to encourage the uptake of digital credit, proper regulation by governments on lending practices by digital lenders to protect MSMEs, and policy frameworks that encourage easy sharing of information on digital lending among MSMEs. | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32289 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Digital Credit Access and Growth of Micro, Small and Medium Enterprises in Uasin Gishu County, Kenya | |
| dc.type | Thesis |