THE IMPACT OF COLLECTIVE INVESTMENT SCHEMES ON FINANCIAL INCLUSION IN KENYA

Abstract

Purpose: The purpose of this study was to determine the impact of collective investment schemes in financial inclusion in Kenya.Methodology: The research design was descriptive survey study in nature since it focused on all collective investment schemes in Kenya. The target population was collective investment schemes. A sample of 11 collective schemes was selected using random sampling. The second stage of sampling involved the selection of the respondents using a stratified sampling approach. The strata were the various respondents in the schemes. Both qualitative and quantitative data was collected using a questionnaire that consisted of both open ended and close ended questions. Data was analysed using Statistical Package for Social Sciences (SPSS) and results presented in frequency tables to show how the responses for the various questions posed to the respondents. The data was then analysed in terms of descriptive statistics like frequencies, means and percentages.Results: The findings implied The study concludes that there was low access to financial products in the investment schemes. It is also possible to conclude that the there were several factors that affect financial inclusion in Kenya. These factors include age of the investor, gender, level of education and level of income.Unique contribution to theory, practice and policy: The study recommended that measures such as target marketing the segments with low access to collective investments and increasing the market budget to investors on financial matters, may be adopted. Such measures would ensure gendered financial inclusion, and inclusion of social economic classes characterized by age, level of income, education and rural urban classes.