Rural Women’s Perspectives on Financial Inclusion: A Case of Rural Women in Kenya

Abstract

Financial inclusion has emerged as a central pillar of global development, yet disparities persist among vulnerable populations especially rural women in developing countries. Despite Kenya’s impressive 84.7% financial inclusion rate, many rural women remain excluded from meaningful participation in the formal financial system. This paper examines the role of rural women’s perspectives and financial literacy in digital financial inclusion in Kenya. Using data from 961 respondents collected through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study finds that rural women’s perspectives have a significant positive effect (β = 0.433, R² = 0.187) on financial inclusion. The findings reveal that while 94% of respondents perceive digital finance as beneficial, only 12% feel safe using it, and 77% have not received any formal financial training. These results highlight that psychological and perceptual barriers trust, safety, and literacy play a decisive role in shaping financial behavior. Grounded in the Vulnerable Group Theory, the study concludes that shifting perceptions through gender-sensitive financial literacy programs, confidence-building mechanisms, and consumer protection measures is essential for equitable and sustainable financial inclusion.