| dc.description.abstract | The advancements of financial technology (fintech) lending in recent years have
brought about a paradigm shift in the financial services landscape, addressing the
limitations faced by micro enterprises in accessing credit through traditional financial
service providers. The study aimed at investigating the effect of fintech lending on the
performance of the micro enterprises in Kasarani Sub-county, Nairobi, Kenya. The
micro enterprises were clustered in Kasarani, Njiru, Ruai and Mwiki. The specific
objectives were to examine the effect of accessibility credit, affordability of credit and
financial inclusion on the performance of micro enterprises. The study was centred on
three theories: loanable fund theory, bank focused theory and financial intermediation
theory. The study used a descriptive research design that utilised primary data. Primary
data was obtained through administering semi structured questionnaires and analysed
using a multilinear regression model. The target group were licensed micro enterprises
actively operating within Kasarani Sub-county as the target population. The sample size
was determined using stratified random sampling procedure in accordance with the
Yamane formula. The foregoing methodology arrived at a representative sample size
of 270 respondents. The micro enterprise population in Kasarani Sub-county was
divided into different strata along the 4 wards. Hand to hand questionnaires was the
main method of data collection and analysed using SPSS. The quantitative data from
the instruments were analysed using descriptive statistics and inferential statistics in the
form of the Pearson’s correlations and regression. An experimental pilot test was
carried out in Roysambu Sub-county before the commencement of the study where 29
research questionnaires were distributed as per the Mugenda and Mugenda theory of
10% to check on any discrepancies with the designed questionnaire and allowed the
investigator to control the moods and attitudes of respondents to the study and
undertake corrections before the actual exercise. The study failed to reject all the 4 study
hypotheses on the relationship between the variables; fintech accessibility, fintech
affordability, financial inclusion and the combined impact of fintech credit
accessibility, affordability, and financial inclusion on the financial performance of
micro enterprises in Kenya. Correlation analysis pointed to a weak positive relation
between fintech credit accessibility and financial performance of micro enterprises and
a weak negative relationship between fintech affordability and financial performance
of micro enterprises. There was however a moderate positive relation between financial
inclusion and financial performance of micro enterprises. The study findings point to
the need to realize untapped potential in the industry by leveraging the existing
elaborate and vast network created by technology and internet availability. The above
is inferred from the empirical evidence of the potential of combined impact of fintech
credit accessibility, affordability, and financial inclusion on the financial performance
of micro enterprises in Kenya. Technology and more importantly the internet, whose
access within the country has taken giant leaps can be leveraged to create awareness
and also gather feedback on fintech services and product offerings. | en_US |
