EFFECT OF FINANCIAL DISTRIBUTION CHANNELS EVOLUTION ON FINANCIAL INCLUSION IN KENYA
Moses Wanami Sindani - Doctor of Philosophy Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Prof. Willy Muturi - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Patrick Ngumi - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The main objective of the study is to determine the effect of financial distribution channels on financial inclusion in Kenya. The study was guided by the following specific objectives; to investigate the effect of internet banking on financial inclusion in Kenya; to determine the effect of ATM banking on financial inclusion in Kenya. The researcher collected specific secondary data for subsequent analysis. The data was collected for the period 2012 to 2017. This study adopted a mixed research design including descriptive and co-relational research design. The population of interest was all the 44 banks in Kenya. The study used secondary data collected using a data collection sheet. In order to conduct analysis, frequency tables, percentages and means was used to present the research findings. Descriptive statistics was used to portray the sets of categories formed from the data. The mean, standard deviation and variance on the dependent and independent constructs was used to show how clustered or dispersed the constructs were. The study found out that R-square (coefficient of determination) was 0.899. The study concludes that internet banking has enhanced the Kenyan banking industry by making it more productive and effective. ATM banking has also a strong positive relationship on the financial inclusion. The study recommends that Policy makers should consider internet banking in formulating strategies because of the technological developments and the expected switch from physical branch networks to technologically supported banking services.
