GENDER AND PHYSICAL LOCATION DISPARITIES IN FINANCIAL INCLUSION IN KENYA
Abstract
Purpose of Study: This study aimed to determine the gender gap in financial inclusion in Kenya by examining how different socioeconomic variables and characteristics contribute to the gap. It also explored factors that lead to geographical disparities in financial inclusion across Kenya.
Problem Statement: Despite progress in financial inclusion in Kenya, gender-specific and geographical disparities remain. Financial services must be accessible to all individuals, but barriers persist that prevent certain groups, particularly women and those in disadvantaged areas, from using these services effectively.
Methodology: Secondary data for this research was sourced from the Kenya National Bureau of Statistics' 2021 Fin Access Household Survey. The Oaxaca-Blinder decomposition methodology was applied to decompose the differences in financial inclusion outcomes between males and females into portions due to observable characteristics, such as education and experience, and portions that remain unexplained.
Result: The study found significant gender and geographic disparities in financial inclusion. These disparities were primarily influenced by socioeconomic factors like education and wealth quantile. The Oaxaca-Blinder decomposition showed that these characteristics play a crucial role in explaining the financial inclusion gap.
Conclusion: While progress has been made in financial inclusion in Kenya, gender and geographical disparities continue to hinder full financial access. The study advocates for policies that promote education, financial literacy, and accessible financial services for disadvantaged groups. Such efforts would aid in achieving the Sustainable Development Goals and Kenya’s Vision 2030 by fostering inclusive economic growth.
Keywords: Financial Inclusion, Gender Disparities, Geographic Disparities, Oaxaca-Blinder Decomposition, Sustainable Development Goals, Vision 2030.
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