Advancing Women's Economic Empowerment through Financial Inclusion: Evidence from Kenya

Purpose: Financial inclusion is a key pathway to women’s economic empowerment and inclusive growth. Although Kenya has expanded financial access through supportive policies and digital financial services, significant gender disparities in access to credit and productive financial services persist. Existing studies mainly focus on the determinants of financial inclusion or specific interventions and locations, with limited evidence on how financial inclusion translates into women’s economic empowerment nationally. This study addresses this gap by examining the relationship between financial inclusion and women’s economic empowerment in Kenya using nationwide evidence. Methodology: The study utilized a cross-sectional research design by analysing secondary data from the national FinAccess 2024 survey. The empirical framework was theoretically grounded in the Human Capital Theory and the Capability Approach, employing a logit regression model to isolate the specific predictors of female financial access. Findings: The regression results revealed that education level, employment status, monthly income, financial literacy, marital status and geographic location significantly dictate a woman's capacity to access financial services. Specifically, women with tertiary education qualifications, high financial literacy levels, and those residing in urban regions demonstrated a significantly higher probability of financial inclusion. Unique Contribution to Theory, Practice and Policy: This study shows that micro-level capability barriers are imperative to closing the financial gender gap. It provides policy recommendations by emphasising the expansion of targeted digital financial infrastructure by enhancing localized financial literacy campaigns and promoting structural access to higher education and formal income-generating opportunities for women.