Effects of financial inclusion on women’s empowerment in Kibera slums

Abstract

Empowering women is crucial as it enables them to navigate employment challenges and societal constraints, fostering proficiency in resource management, improving well-being, promoting economic growth and gender equality. Financial inclusion is a key factor in promoting women's empowerment. This study aimed to investigate the effect of financial inclusion on empowerment among women living in Kibera slums in Nairobi County, Kenya. The objectives of the study were to establish the effect of access to financial services on women’s empowerment, usage of financial services on women’s empowerment and the quality of financial services on women’s empowerment in Kibera slums. The study was pegged on the public goods theory, community echelon theory of financial inclusion and feminist theory. Furthermore, the study adopted a postpositivist approach and employed a quantitative technique using primary data collected from a sample of 398 women via structured questionnaires. Analysis of the data was done by utilizing a regression analysis and Stata was used for the analysis. The results of the study were presented in tables and figures followed with pertinent interpretation. The study revealed a significant positive relationship between access, usage and quality of financial services and women’s empowerment among women in Kibera slums. This study concluded that financial inclusion is key to making women more empowered. The recommendations for the study include prioritizing initiatives to enhance access to diverse financial services, implementing tailored financial education programs through NGOs and community-based organizations, and ensuring collaboration between financial service providers and local institutions to improve the quality of financial services in underserved areas like Kibera Slums.

Key Words: Financial Inclusion, Women’s Empowerment, Access to Financial Services, Usage of Financial Services, Quality of Financial Services