Enablers and Barriers to Consumer Financial Health: What Influences Consumer Financial Health?

It has been widely established that financial inclusion plays a key role in facilitating economic growth, reducing inequality and improving overall societal welfare in the economy. With this established nexus, many countries have channelled their concerted efforts on financial inclusion, and rightly so. The Kenyan financial system has been a notable champion and firm believer in financial inclusion in the Sub-Saharan African region. Their commitment has led to notable increases in access to financial services for its people, especially for low-income and marginalised households. Despite the high levels of access to financial services, recent data indicates that ‘consumer financial health’ is very low as only fifth of Kenyan adults are said to be in a state of financial health. Against this background and in line with both knowledge economy and financial inclusion literature, our study seeks to indagate the enablers and barriers to consumer financial health. Our work attempts to contribute to the limited literature on this phenomenon especially. We employ the probit model and benefit from the latest Kenya National FinAccess Survey. We establish positive and significant results from: trust in financial services; household income; being close to a financial service facility; having a financial life and financial literacy. On the other hand, negative effects established from: belonging to minority group; high household dependency; low-income households and another household member using mobile money services. The study offers recommendations disaggregated by supply, demand, and regulatory side. Keywords: Financial health, financial wellbeing, financial services, financial inclusion, probit DOI: 10.7176/JESD/16-5-02 Publication date: July 30th 2025