The Determinants of Financial Inclusion and Access to Credit Among the Youth in Kenya.

Abstract

In this study, the focus was on exploring the determinants of credit access and financial inclusion among the youth in Kenya. The data used for this study was sourced from the Fin Access 2021 dataset, providing a rich and up-to-date source of information. A logistic regression model was employed to identify determinants of financial inclusion among Kenyan youth. The findings revealed that age plays a significant role, with older youth being more likely to be financially included. The relationship with age, however, exhibited a non-linear pattern, as older youth were slightly less likely to be financially included. Education levels were also a pivotal factor, indicating that formal education significantly increased the likelihood of having access to financial products. Higher income levels were positively correlated with financial inclusion, underlining the importance of economic empowerment. Intriguingly, NHIF usage was found to be negatively associated with financial inclusion, suggesting that there may be specific barriers or factors related to health insurance use that need further examination. Policy recommendations include the need for tailored financial education programs, youth-friendly financial products, and support for youth entrepreneurship, with a focus on age-specific financial initiatives to meet evolving needs.