FINANCIAL TECHNOLOGY AND ACCESS TO CAPITAL AMONG YOUTH-OWNED ENTERPRISES IN MOMBASA COUNTY, KENYA
FINANCIAL TECHNOLOGY AND ACCESS TO CAPITAL AMONG YOUTH-OWNED ENTERPRISES IN MOMBASA COUNTY, KENYA
Ali Sabil Dafala - Postgraduate Student, Department of Accounting and Finance, School of Business, Economics and Tourism. Kenyatta University, Kenya
Dr. Francis Gitagia (PhD, CPA) - Lecturer, Department of Accounting and Finance, School of Business, Economics and Tourism, Kenyatta University, Kenya
ABSTRACT
Access to capital remains one of the most critical drivers of growth, innovation, and sustainability among youth-owned enterprises, particularly in developing economies where youth entrepreneurship plays a major role in employment creation and poverty reduction. In Mombasa County, limited access to formal financing continues to constrain business expansion, technology adoption, and enterprise survival among young entrepreneurs. Recent evidence shows that only 18.2 percent of youth in Mombasa County have received loans from regulated financial institutions, with the average amount of KES 37,800 remaining significantly below the national youth enterprise average of KES 52,400. This continuing financing gap limits the growth of youth-owned businesses and weakens broader economic prospects for the county. The study examined the effect of FinTech adoption on access to capital among youth-owned enterprises in Mombasa County. Specifically, the research assessed the effects of mobile banking adoption and digital credit platform usage on access to capital. The study was anchored on the Diffusion of Innovations Theory and Technology Acceptance Model. A descriptive research design was adopted targeting registered youth-owned enterprises operating in Mombasa County. Primary data were collected using structured questionnaires administered to enterprise owners and managers. Diagnostic tests including normality, multicollinearity, heteroscedasticity, and linearity were conducted to ensure robustness of the regression model. Data were analyzed using Stata through descriptive statistics and inferential techniques including Pearson correlation and multiple regression analysis. Findings were presented using tables. Regression results showed that mobile banking adoption had a positive and statistically significant effect on access to capital (β = 0.221, p < 0.05) and digital credit platform usage had a positive and statistically significant effect on access to capital. The study concludes that mobile banking adoption and digital credit usage significantly improve access to capital among youth-owned enterprises in Mombasa County. The study recommends strengthening youth-focused fintech products, integrating digital payment systems with formal credit assessment frameworks, and promoting financial literacy to improve enterprise financing outcomes.
