Determinants of Financial Inclusion Strategies Adoption by Savings and Credit Cooperatives in Kirinyaga County

Abstract

This study sought to analyse determinants of adoption of financial inclusion strategies in SACCOs in Kirinyaga County. Specifically, the study sought to analyze the effect of financial resources, and loan repayment on adoption of financial inclusion strategies. The study was guided by the theory of the firm and information asymmetry theory. The target population was SACCOs in Kirinyaga County. Purposive sampling was conducted to recruit study a sample of 246 persons. Primary and secondary data were collected. Descriptive methods (frequencies, percentages, mean and standard deviation) were used to analyse data. Regression analysis was conducted to assess relationships between variables and test hypotheses. Findings were presented in the form of tables and figures. ANOVA test revealed that selected variables were significant (p=0.00) to financial inclusion in SACCOs. The findings indicated that the variables under investigation contributed 63% to financial inclusion. The findings showed that financial resources (p=0.00) and loan repayment (p=0.00) were all significant at 95% confidence level. The study concluded that the determinants of financial inclusion in order of magnitude are financial resources and loan repayment. The study recommended that more SACCOs should embrace utilization of credit reference bureau.