Factors driving usage of financial services from different financial access strands in Kenya

This study uses data from the 2006 and 2009 national financial access (FinAccess) surveys to examine factors influencing financial service choices that households make. The findings indicate that households’ access to financial services is based on levels of education, access to a saving facility, availability of M-Pesa services, age, group affiliations and wealth. The study further indicates that about a third of the adult population does not use any form of financial services available. Based on the results, the study recommends innovative marketing strategies aimed at expanding the use of mobile phones, which are valuable beyond the voice service and recoup costs from their increased usage; increased investment in financial education; and better designed financial products by the private sector appropriate for the unbanked majority.