Financial Technology Services, Government Regulations and Financial Inclusion of Small-Scale Fish Farmers in Homa Bay County, Kenya
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Date
2025-03
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Publisher
Kenyatta University
Abstract
The significance of financial inclusion lies in its ability to offer affordable and accessible financial services to every category of people. The financial exclusion rate in Homa Bay County stands at 15% while formal access by population is at least at 81.8%. Small-scale fish farmers in the county often engage in informal economic activities, typically facing barriers like limited financial literacy, lack of collateral, and geographical constraints. These challenges are consistent with the characteristics of financially excluded groups. The purpose of this study was therefore to investigate effects of financial technology services particularly agency banking, mobile money services and online banking services with the moderating effect of government regulations on financial inclusion of small-scale fish farmers in Kenya’s Homa Bay County. Anchored on theoretical underpinnings such as Innovation Diffusion Theory, Financial Intermediation Theory, Technology Acceptance Theory and Public Interest Regulation Theory, the study aimed at providing insights to leveraging government regulation and fin-tech services towards achieving financial inclusion for the fish farmers in Homa Bay County. This study used causal research design with a target population of 495 small scale fish where a sample of 144 respondents were selected using stratified random sampling technique. Data analysis was aided by SPSS software version 26.0 involving both descriptive and inferential analysis. The specific descriptive statistics included mean, standard deviation, frequency and percentages, while inferential analysis included both correlation and regression analysis. The study used multiple linear regression model to link the independent variables to financial inclusion. Findings revealed significant effects of agency banking, mobile money services and online banking which together explained 58.1% of variation in financial inclusion. Therefore, it is concluded that financial technology is vital in enhancing financial inclusion among small scale fish farming communities through increased access to bank accounts; secured transactions processes and agent incomes respectively. In view of the findings, the study recommends that policymakers should improve agency banking infrastructure to expand financial access for small-scale fish farmers. Strengthening cyber security and consumer protection regulations will improve trust in mobile and online banking services. Additionally, regulatory frameworks should be streamlined to support fin-tech innovations while ensuring that financial inclusion remains a priority.
Description
A Thesis Submitted to School Of Business, Economics & Tourism in Partial Fulfilment of the Requirements for the Award of Degree of Master of Science in Finance of Kenyatta University, March 2025.
Supervisor
1. Salome Mwongeli Musau
2. Anthony Mugetha Irungu