EFFECT OFDIGITALFINANCIALSERVICESONFINANCIAL INCLUSIONOFWOMENOWNEDENTERPRISESINNAROKCOUNTY, KENYA

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.