The Role of mobile banking on financial inclusion in Kenya

Abstract

This study investigates the role of mobile banking in enhancing financial inclusion in Kenya, focusing on the effects of mobile bill payments and mobile credit facilitation. The analysis uses descriptive and panel regression techniques to assess the connections between these variables and financial inclusion, as determined by account ownership, using secondary data from 2018 to 2023 and a causal research design. The results highlight barriers like digital literacy and socioeconomic factors by showing that mobile bill payments, while positively associated with financial inclusion, have a statistically insignificant relationship. On the other hand, there is a slight negative correlation between formal account ownership and mobile credit facilitation, even though it is widely used for micro-loans and larger financial needs. These findings demonstrate that to realize mobile banking's potential to fully advance financial inclusion, focused interventions are required to address systemic barriers, improve digital infrastructure, and raise financial literacy. In order to close current gaps and accomplish sustainable financial inclusion, the study recommends a multipronged strategy for policymakers, financial institutions, and development organizations.