Influence of financial regulation on financial inclusion: A case study of the fintech industry in Kenya
Date
2021
Authors
Murgor, Eileen Chepkirui;
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This study investigates the relationship between financial regulation and financial
inclusion in the Kenyan fin tech sector. The possibility of either variable influencing the other
is put into consideration using secondary data from a survey over the period 2018 to 2019. By
employing the use of a binomial logistic regression model, the findings indicate that there is a
positive relationship between financial inclusion and financial regulation. More specifically,
the usage of digital loan apps and mobile money has a significant positive correlation with
financial regulation. Thus, greater financial inclusion leads to increased financial regulation,
which positively impacts financial stability. The practical implications of this paper are that
one of the ways policymakers and the government can increase financial inclusion is through
creating favourable regulatory measures that create an enabling environment but not at the
expense of consumer protection.
Description
Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Business Science in Financial Economics at Strathmore University