The Determinants of Financial Inclusion

8 Pages Posted: 11 Aug 2021

See all articles by Naftaly Mose

Naftaly Mose

University of Eldoret

John Thomi

University of Nairobi

Date Written: July 14, 2021


There are hosts of dynamics contributing to financial inclusion. These sources may be both from the demand side and supply side. The government and financial institutions use several policy initiatives to encourage the supply of financial services to the excluded sector. However, the demand-side factors of financial access have attracted little focus. This study provides an over-view of sources of financial inclusion and highlights the policy measures from the perspective of consumers of financial services – also known as the demand-side. The secondary series data were estimated using the ordinary least square method. The findings of the study indicate that economic growth and the number of internet users exert a positive and significant effect on financial access in East Africa. On the other hand, the result indicates that the deposit interest rate was insignificant. The study recommends the deposit interest rate be made attractive to promote continuous saving and access to loanable funds in the financial market. The policy strategies therefore should be aimed at cultivating a conducive financial system that upholds financial access-demand-driven rates to stimulate financial growth.

Keywords: consumer finance, financial inclusion, financial institutions, macro economy

JEL Classification: D14, E44, G28

Suggested Citation

Mose, Naftaly and Thomi, John, The Determinants of Financial Inclusion (July 14, 2021). Financial Internet Quarterly 2021, Available at SSRN: or

Naftaly Mose (Contact Author)

University of Eldoret ( email )

P. O Box 1125
Eldoret, 30200

John Thomi

University of Nairobi ( email )

Nairobi, 40200

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