Financial Technology and Financial Performance of Micro, Small and Medium Enterprises in Kakamega County, Kenya

Financial performance of Micro, Small, and Medium Enterprises (MSMEs) in developing countries remains a major concern despite their dominance in the entrepreneurial sector. Many MSMEs struggle with limited access to formal financial services and inefficient resource management. The insufficient integration of financial technology (FinTech) continues to hinder their potential to enhance efficiency, improve financial inclusion, and drive sustainable economic growth. This paper explored the relationship between financial technology and the financial performance of MSMEs in Kakamega County, Kenya. The data collected for this study was mainly primary data obtained through the distribution of structured questionnaires to MSMEs in Kakamega County. The target population was 2370 MSMEs operating in Kakamega County. The sample size in this study was 342 respondents was obtained by using the Yamane Formula (1967) where a total of 327 were duly completed and returned, yielding a high response rate of approximately 95.6%. The data obtained was analysed using SPSS software. Findings revealed that financial technology was statistically significant on the financial performance of MSMEs in Kakamega County, Kenya. The study recommends MSME owners in Kakamega County should receive targeted training programs to enhance their understanding and usage of FinTech.