Digital Payments and Financial Inclusion among the Youth in Kenya

Abstract

This study sought to investigate the relationship between digital payments and financial inclusion among the youth in Kenya. In specific, the study employed payments from people to businesses and payments between people as measures of digital payments. The study sampled youth in Kenya to youth in universities in Nairobi County. This study sought to collect primary data using questionnaires for one year, targeting 2020. The data collected were analyzed using both descriptive and inferential statistics. The study found out there was a significant positive relationship between digital payment and financial inclusion. Emulated from the empirical results, the study recommends that digital financial services providers should improve the provision of digital payments. This can be enhanced through the reduction of transaction charges which would lower the overall costs. Multiple stages of transaction charges make digital payments expensive. More so, the government should aim to eliminate the one percent tax imposed on mobile money, a form of digital payment, which has led to an increased cost of mobile money.