Digital Technologies and Financial Inclusion amongst Small and Medium-Sized Enterprises in Nairobi County, Kenya

Olutatwa Martha Katibi () and Dr. Rebecca Mutia ()

International Journal of Finance, 2025, vol. 10, issue 8, 50 - 69

Abstract: Purpose: The study aimed at establishing the effects of digital technologies on financial inclusion amongst small and medium-sized enterprises in Nairobi County,Kenya. The study was specifically centered on establishing the effect of online banking services, digital lending platforms, agency banking platforms and mobile money services on financial inclusion amongst small and medium-sized enterprises in Nairobi County, Kenya. Methodology: A descriptive research design was employed and the target population comprised of 21100 SMEs operating in Nairobi City County Central Business District. Fishers sampling formula was utilized in deriving a sample size of 96 SMEs. Stratified sampling technique was used in distributing the sample size across the SMEs’ categories. The units of observation comprised of owners or managers of the businesses. The instrument for collecting data were closed-ended questionnaires structured in a five-point Likert scale. The gathered data was analysed using both descriptive and inferential statistics. Findings: The study established that online banking services, digital lending platforms, agency banking platforms and mobile money services positively and significantly correlates with financial inclusion amongst SMEs. Consequently, the study established a positive and significant effect of digital technologies on financial inclusion. The results implied that increasing any of the aspects of the digital technologies with one unit would result to an increase in the levels of financial in SMEs with respective beta values. Agency Banking Platforms however had a positive but insignificant effect on financial inclusion. Unique Contribution of Theory, Practice and Policy: The study recommended the SMEs to leverage on the digital technologies in their business operations since the technologies contributes significantly to financial inclusion and business growth. This study integrates multiple dimensions of digital technologies such as online banking, digital lending, agency banking, and mobile money into a unified framework to assess their collective influence on financial inclusion among SMEs in an urban developing-country context. The findings contribute to theory by extending financial innovation and intermediation perspectives to SME settings. This is in addition to offering practical insights for policymakers and managers on designing digital and regulatory strategies that enhance SME financial accessibility and inclusion.

Keywords: Online Banking Services; Digital Lending Platforms; Agency Banking Platforms; Mobile Money Services; Financial Inclusion (search for similar items in EconPapers)
Date: 2025
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