Abstract:
Digital financial services (DFS) have rapidly transformed financial landscapes
worldwide, yet their role in advancing financial inclusion for women owned
enterprises remains insufficiently explored. In regions such as Narok County, where
women face unique economic challenges, understanding how DFS can empower
marginalized entrepreneurs is critical for sustainable growth and social equity. This
study investigated the effects of DFS on enhancing financial inclusion among women
owned enterprises by evaluating the effects of digital payments, digital lending,
digital savings, and digital insurance. The study was anchored on the Technology
Acceptance Model. The research employed a cross sectional research design targeting
482 women owned enterprises in Narok County, Kenya. Stratified sampling was first
used to group similar enterprises then simple random sampling was used to select a
sample of 214 respondents. Data was collected via structured questionnaires, analyzed
using both descriptive and inferential statistical methods. Reliability was confirmed
through Cronbach’s alpha, and the regression model was validated using a series of
diagnostic tests. Data was analyzed with the help of Statistical Package for Social
Sciences (SPSS) version 26, where both descriptive and inferential statistics were
computed to assess the relationship between the variables. Results showed that digital
payment, digital lending, digital savings, and digital insurance affected the financial
inclusion of women owned enterprises in Narok County to a great extent. The
findings revealed that all four DFS components significantly affected financial
inclusion. Digital payments (β = 0.354) and digital savings (β = 0.447) had the
strongest positive effects, while digital lending (β =-0.152) showed a significant but
negative relationship. Digital insurance (β = 0.311) also demonstrated a positive
impact on inclusion. These results emphasize the importance of aligning DFS
solutions with the needs of women entrepreneurs to improve access, affordability, and
trust. The study concludes that all four variables had a significant effect on the
financial inclusion of women owned enterprises. It recommends that policymakers
and financial service providers strengthen digital savings platforms, reform digital
lending systems to be more inclusive, and enhance awareness of digital insurance to
promote financial empowerment and growth among women entrepreneurs in Narok
County.
