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Fintech Adoption and Credit Access of Micro, Small, Medium Enterprises in Nairobi City County, Kenya

Author

Listed:
  • Fandja Oya Isha Terry

    (School of Business and Economics, Daystar University, Kenya)

  • Charles Katua Kithandi

    (Daystar University, Kenya)

  • Molson Onchomba

    (School of Business and Economics, Daystar University, Kenya)

Abstract

Access to credit remains a major constraint for MSMEs in Nairobi City County. This study examined the influence of FinTech adoption on credit access, focusing on mobile lending, digital banking, and web-based platforms, and assessed the moderating role of regulatory frameworks. Anchored on Disruptive Innovation Theory, data were collected using structured questionnaires and analyzed using descriptive and inferential statistics with SPSS. Regression results showed that mobile lending, digital banking, and web-based platforms positively and significantly influence credit access. Regulatory frameworks also significantly moderated the relationship by boosting confidence and reducing risks associated with digital credit services. The study recommends strengthening oversight, improving cybersecurity, and promoting digital literacy to maximize FinTech benefits for credit access.

Suggested Citation

  • Fandja Oya Isha Terry & Charles Katua Kithandi & Molson Onchomba, 2025. "Fintech Adoption and Credit Access of Micro, Small, Medium Enterprises in Nairobi City County, Kenya," East African Finance Journal, East African Finance Journal, vol. 4(4).
    • Handle: RePEc:cwk:eafjke:2025-34
    DOI: 10.59413/eafj/v4.i4.5
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    References listed on IDEAS

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    1. Ali Bhagat & Leanne Roderick, 2020. "Banking on refugees: Racialized expropriation in the fintech era," Environment and Planning A, , vol. 52(8), pages 1498-1515, November.
    2. Ashenafi Fanta & Kingstone Mutsonziwa, 2021. "Financial Literacy as a Driver of Financial Inclusion in Kenya and Tanzania," JRFM, MDPI, vol. 14(11), pages 1-13, November.
    3. Erik Feyen & Jon Frost & Leonardo Gambacorta & Harish Natarajan & Matthew Saal, 2021. "Fintech and the digital transformation of financial services: implications for market structure and public policy," BIS Papers, Bank for International Settlements, number 117.
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