Promotion of Financial Literacy through Financial Education Partnership for Financial Inclusion in Kenya: Case of Commercial Banks

Abstract

The purpose of the study was to assess the effects of financial education partnership on financial inclusion of commercial banks. The study was guided by resource-based theory to hypothesize the relationship between financial education partnership and financial inclusion. The study design adopted was descriptive and a sample of 384 was derived using stratified simple random sampling from a population of 10,717 management staff from all the branches of commercial banks in Kenya. The study collected and analyzed primary data. The data was gathered using semi-structured questionnaires. The study employed both descriptive and inferential statistics for data analysis. Correlation and regression were applied to determine the relationship between financial education partnership and financial inclusion. The findings established that financial education partnership positively and significantly predicted financial inclusion. This implied that as financial education partnership increases then financial inclusion will be increased. The study concluded that the use of financial education partnership as financial literacy delivery channel increased financial inclusion. Commercial banks in Kenya sparring used financial education partnership. The majority used a partnership with the government to promote financial literacy by conducting workshops and conferences. The study recommended that commercial banks management should adopt aspects of financial education partnership currently not used. These include financial education sponsorship, collaborating with other financial institutions, academic institutions through organizing lectures, and being involved in a nationwide campaign to promote financial literacy