Effect of Financial Technology Loans on Financial Inclusion Among the Unbanked Low-Income Earners in Makueni County

  • Samson Mutuku Mule
  • Fredrick Wafula
  • Nickson Agusioma
Keywords: Financial technology Loans, Financial Inclusion


Financial inclusion is crucial in fostering individual prosperity, poverty eradication and stimulating economic growth. It is therefore a major policy concern for majority of governments across the world. Despite the rampant growth of financial technology in Kenya, the number of adults who are financially excluded is still high among the rural area residents. Lack of financial services access in rural areas has resulted to rural economic growth retardation and inequality. Further, financial exclusion has led to increased poverty levels because those excluded have been forced to depend on their limited savings to pursue their entrepreneurial interests. Small businesses have had no choice but to rely on their inadequate earnings to pursue viable business opportunities. The main objective of this study was to establish the effect of financial technology loans on financial inclusion among the unbanked low-income earners in Makueni County. Descriptive research design was used, with the target population being the unbanked low-income earners over the age of 18 in Makueni County. A sample size of 384 respondents was chosen using the convenience sampling technique. Personal interviews were conducted using an interview guide to collect primary data. The study found that fintech loans have a positive and significant effect on financial inclusion among the unbanked low-income earners in Makueni County. According to the findings of the study, since the unbanked people in Makueni County associate the use of financial technology loans to meeting personal financial needs and especially coping up with day-to-day expenses and emergencies, this study recommends that such people embrace the use of the fintech loans more as it will aid them in improving their financial lives to a greater extent. This is because for instance, by using the fintech loans, they can create employment for themselves and generate sufficient income by financing micro businesses using this credit.

Author Biographies

Samson Mutuku Mule

Correspondent author, Faculty of Business and Economics, Multimedia University of Kenya

Fredrick Wafula

School of Business and Entrepreneurship, Bomet University College, Kenya

Nickson Agusioma

Faculty of Business and Economics, Multimedia University of Kenya


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How to Cite
Mule, S., Wafula, F., & Agusioma, N. (2021). Effect of Financial Technology Loans on Financial Inclusion Among the Unbanked Low-Income Earners in Makueni County. International Journal of Current Aspects in Finance, Banking and Accounting, 3(2), 1-12. https://doi.org/10.35942/ijcfa.v3i2.183