Assessing the Effects of M-Shwari on Financial Inclusion among Muhoroni Factory Sugarcane out - Growers’ Households in Muhoroni Sub-County, Kenya

Abstract

In Kenya today the decline in cane production per given unit area has led to a domestic sugar consumption deficit that averages 200,000 tonnes of sugar annually. An aggressive financial inclusion strategy in the sugar sub-sector can sealing this deficit and create employment for up to 6 million Kenyans, whilst saving foreign exchange annually. The study was guided by the following specific objectives; to assess the effect of access to M-Shwari transactions on financial inclusion among cane out-growers’ households in Muhoroni sub-county, Kenya. to assess the effect of suitability of M-Shwari on financial inclusion amongst cane out-growers’ households in Muhoroni Sub-County, Kenya. to assess the effects of procedural formality of M-Shwari on financial inclusion amongst cane out-growers’ households in Muhoroni sub-county, Kenya, to assess the effects of moderating variable; poverty level, cane income, fiscal and monetary mix on financial inclusion among cane out-growers’ households in Muhoroni Sub-County, Kenya. Based on comprehensive literature review on same area of study, a suitable conceptual framework which dramatically depicts the key areas of study was developed. This conceptual framework outlines the independent variables (access to transactions, suitability of m-shwari, procedural formalities and moderating variables) and dependent variables (financial inclusion among Muhoroni sugar factory out-growers’; households). The study population was all the 5,000 Muhoroni Sugar factory Out-Growers’ Households within Muhoroni sub-county, Kisumu county. The study adopted Stratified proportionate random sampling technique that allowed construction of error estimates. A total of 366 questionnaires were completed successfully. This is a 98.9% response rate. The study collected data from the respondent using open-ended and closed questionnaires. Data was collected, cleaned, coded and analysed with the aid of statistical package for social sciences (SPSS) package. The gathered data was analysed using descriptive statistics. Keywords: Financial Inclusion, sugar cane out-growers’ households, M-Shwari effects