March 6th, 2025

Financial inclusion empowers women to play a stronger role in the economy and manage households, where they often take primary responsibility.

The term “economy” itself comes from the Greek word oikonomia, meaning “household management.” For women, bridging liquidity shortfalls, coping with risks, and amassing lump sums for investment are critical in their roles as household managers and economic agents.

Digitisation has been a major driver in enabling women to access finance. Since the advent of MPESA in 2007, Kenya has tracked digital financial inclusion through the FinAccess surveys. The data shows that mobile money uptake has been the main driver of financial access and a key factor in reducing the gender gap in financial inclusion to 1.6%. With an average gender gap of around 6% in developing economies, Kenya is performing better than most.

This segmentation study on digital finance highlights the importance of digital technology in bridging gendered financial divides. The study explores how women and men are utilising digital financial services and examines the changes between 2021 and 2024.

Segmentation Overview

FSD Kenya’s digital financial services segmentation categorises the Kenyan adult population into four distinct segments

The study reveals a significant shift towards digitisation since 2021, with growing gender parity. By 2024, the percentage of women in the most advanced digital user segment surged by 62%, rising from 3.5 million in 2021 to 5.7 million. This growth is driven by increased digital payment frequency and rising smartphone ownership among women. Women are increasingly using digital accounts for daily household needs, school fees payments, medical care payments, and bills. For instance, the percentage of women using digital payment channels for household expenses rose from 56% in 2021 to 79% in 2024.

Despite this progress, men still dominate the most digitally advanced segment, comprising 54% of this group. This segment is predominantly male, urban, highly educated, and formally employed or in business.

Conversely, women dominate other segments, including those who are excluded, infrequent users, or traditional digital users (digitally active but without smartphones or internet access). This highlights the intersectionality between gender, poverty, rurality, and livelihoods. Digital financial activity is higher among those with tertiary education and formal employment, where women are disadvantaged. The rural-urban divide also contributes to the digital divide. With a higher proportion of women in rural areas, women also suffer more from the constraints in rural economies.

Conclusion

Kenya’s 2024 FinAccess Household Survey highlights digitisation as a key driver in bridging the gender divide. While men still lead in digital finance uptake, women are rapidly catching up.

As we commemorate International Women’s Day, it’s crucial to recognise and support efforts to empower women through digital financial tools. How can digital finance better support women in managing household finances, balancing their roles as household managers and income earners, and advancing their business and farming endeavors? Will digitisation bridge gender gaps not only in finance but also in the broader economy? What are the limitations and challenges of digital technology in creating a more equitable economy and future for all?

Click here for the FinAccess 2024 – Digital financial services segmentation deck

 

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