Influence of Digital Financial Services On Financial Inclusion Among Women-Owned Enterprises in Kajiado Central Sub-County

Abstract

Financial inclusion aims to close gaps in the access enterprises have to financial products and services, though uptake remains weak among businesses owned by women. Figures reveal that merely 15.6% of SMEs obtain bank credit, whereas only 10% have fully woven digital financial services into their transactions. Numerous SMEs still encounter difficulties when trying to reach financial services, which raises their exposure to financial exclusion. In response, a range of digital financial services has been rolled out and taken up by small enterprises. This study explored how digital financial services influence financial inclusion among women-owned enterprises in Kajiado Central Sub-County. In particular, it evaluated the impact of digital payment, withdrawal, savings, and credit services. The research drew on financial intermediation theory and technology acceptance model (TAM) together with rational choice theory and employed a quantitative explanatory survey research design. Altogether, 138 questionnaires were issued to respondents in chosen women-owned enterprises in Kajiado Central Sub-County, of which 116 were filled out and returned, producing a response rate of 84.1%, deemed sufficient for analysis. Results reveal that digital payment systems enjoy broad acceptance and are viewed as advantageous. A positive link between digital payments and financial inclusion underscores their part in boosting transaction efficiency, broadening access to financial services, and bringing women-owned enterprises into the formal financial system. The research likewise established that having withdrawal point’s close by sustains business operations by allowing easy conversion of digital funds into cash. The favourable influence of digital withdrawal services implies that better access strengthens entrepreneurs' capacity to make effective use of financial services. Moreover, digital savings services were found to encourage consistent saving habits through incentives like interest earnings, bonuses, and rewards. A robust positive link between digital savings and financial inclusion shows that these services carry a considerable impact relative to other variables. In addition, digital credit services were demonstrated to deliver quicker loan approvals and wider accessibility than conventional lending systems. Regression outcomes verified that digital credit exerts a statistically significant effect on financial inclusion. The study concludes that digital financial services payments, withdrawals, savings, and credit perform a meaningful and mutually reinforcing role in strengthening financial inclusion among women entrepreneurs. Their accessibility, efficiency, and user-focused features render them potent instruments for economic empowerment. The study recommends that policymakers and financial service providers broaden digital infrastructure, especially agent networks and ATM coverage, to enhance accessibility. Financial institutions ought to improve digital savings products via incentives and user- friendly features, while digital credit systems should emphasize affordability, transparency, and responsible lending. Lastly, targeted financial literacy programs are vital to furnish women entrepreneurs with the knowledge and skills required to fully harness digital financial services.