Financial Literacy and Consumer Protection: A Road Map to Digital Financial Access by Smes in Kenya
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Date
2022
Authors
Musau, salome M
Muathe, Stephen
Mwangi, Lucy W
Journal Title
Journal ISSN
Volume Title
Publisher
Los Angeles, CA: The Academy of Entrepreneurial Finance (AEF)
Abstract
This paper seeks to ascertain the influence of financial literacy and financial consumer protection
on digital financial access. The objectives of the study were to find out the effect of financial
literacy on digital monetary access, and to find out the effect of f consumer financial protection
on digital access of finances of SMEs in Sub County of Ruiru in County government of Kiambu,
Kenya. Financial Literacy Theory, Information Asymmetry Theory and Social Learning Theory
are the theories that guided formulation of study’s objectives. Descriptive research design was
used with the population of interest comprising of all SMEs owners in Ruiru Sub County in
Kiambu County. The sample size for the study was 384 respondents derived byFisher (1998)
formula. Primary data as collected by use of questionnaires. Descriptive statistics of mean,
frequency, percentages and standard deviation were used combined with inferential analysis of
correlation as well as multiple regression to analyse the data. Findings of the study indicated that
financial literacy and financial consumer protection significantly and positively influence on
digital financial access of SMEs. The paper concluded that an improvement in the knowledge of
financial products, developing a financial attitude towards the long term, debt management
literacy of SME owner, financial product choice knowledge and having the ability to make
informed decisions regarding finances generally improves digital financial access of SMEs.
Description
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Keywords
Citation
Musau, S. M., Muathe, S., & Mwangi, L. W. (2022). Financial literacy and consumer protection: A road map to digital financial access by SMEs in Kenya. The Journal of Entrepreneurial Finance (JEF), 24(2), 1-25.