The Impact of Gender in the Utilization of Digital Financial Services in Kenya

Abstract

This study sought to estimate the impact of gender in the utilization of digital financial services. (DFS) in Kenya using the 2021 FinAccess Survey, which is a joint initiative of the Kenya National Bureau of Statistics (KNBS), Financial Sector Deeping (FSD) Kenya, and the Central Bank of Kenya (CBK). We employed the Probit Model to identify the gender differences in access to DFS in Kenya. The findings showed the significance of education level, gender, digital credit, mobile ownership, age, and income levels in explaining the utilization of diverse digital financial services, including digital credit. A significant 78 percent reported using digital financial services (DFS) in the country. We recommend heightened enactment and implementation of policies targeting the enhancement of income, mobile ownership, and educational attainment among individuals, which could facilitate the utilization of available digital financial services in Kenya, particularly among women. To overcome barriers related to mobile ownership, the implementation of subsidized smartphone initiatives and expansion of network coverage in rural and underserved areas have emerged as pivotal strategies. These actions would effectively improve access to digital financial services by increasing mobile ownership, particularly among women