FINANCIAL INCLUSION IN EAST AFRICA. DOES ECONOMIC GROWTH MATTER

Abstract

Inclusive financial system in any economy cannot be ignored. In fact, it has become a policy priority in many governments around the world, including East Africa - Kenya, Uganda and Tanzania. Using panel data, this study presents cross country analysis of the variables that determine financial inclusion levels with key focus on economic growth. The study sought to test if economic growth matters in financial inclusion in East Africa. Fixed Effect Method was adopted. In accordance to the findings of the study, economic growth, internet users and inflation rate depict a considerable effect on the financial inclusion rate. The corroboration presented by this study may help the respective countries to adopt policies that focus on improving financial inclusion levels.