In Kenya today, financial inclusion is often praised as a success story, and in many ways, it is. Mobile money, digital banking, and fintech solutions have transformed how Kenyans access and move money. But this transformation has not been equal. For millions of women, especially those in the informal sector, the promise of financial inclusion still feels distant, shallow, and at times, even exploitative.
The informal sector in Kenya is largely powered by women. From market vendors to salon owners, from domestic workers to mama mbogas, women form the backbone of local economies. And yet, the financial systems meant to support enterprise and cushion economic vulnerability have largely overlooked them. Many of these women operate in spaces that are unregulated, unpredictable, and heavily exposed to financial risk. Accessing credit from formal banks is nearly impossible without collateral, payslips, or financial history. This has left women with few alternatives and even fewer protections.
Over the past decade, more than 120 digital lending platforms have sprung up in Kenya, offering instant credit with no collateral and minimal vetting. While they appear to solve a problem, they often create new ones. The loans come with interest rates that can soar as high as 400% annually. Many women borrow to pay for necessities: school fees, hospital bills, rent, or groceries. These are not luxury purchases; they are survival loans. When repayment becomes difficult, lenders resort to aggressive and humiliating tactics, such as sending threatening messages to the borrower’s phone contacts. What starts as a lifeline quickly turns into a trap, stripping women of both their money and their dignity.
Despite these challenges, recent data shows that more women are embracing digital tools. A 2024 study by FSD Kenya revealed that the number of women in the most advanced digital user segment grew by 62% rising from 3.5 million in 2021 to 5.7 million. Women are increasingly using digital accounts to manage their day-to-day lives, including paying for school fees, healthcare, bills, and household needs. For instance, the percentage of women using digital channels for household expenses rose from 56% in 2021 to 79% in 2024. This is clear evidence of growing digital confidence and capability among women.
However, this progress has not closed the gap. The most digitally advanced user segment still skews male; 54% of that group are men. These users are typically urban, well-educated, formally employed, and better positioned to take full advantage of financial technology. For women, especially those in the informal economy, access is often limited by affordability, literacy, or lack of trust in digital systems. Progress, in this case, does not mean parity.
In addition to digital exclusion, women face systemic financial sabotage through corruption. Many small-scale women traders pay informal “taxes” to avoid harassment by local authorities or to secure a good spot in the market. These are not official levies they are bribes that drain daily profits and perpetuate inequality. This kind of financial leakage, often overlooked in national conversations, forms part of a broader network of illicit financial flows that keeps women trapped in survival mode.
If we are serious about building a financially inclusive Kenya, then we must start designing systems with women in mind. That means creating financial products that reflect the lived experiences of women flexible loans, micro-insurance, group savings tools, and services that don’t punish irregular income. It also means enforcing regulations on digital lenders, especially around interest rates, data protection, and debt collection practices. The Central Bank of Kenya has taken positive steps, but enforcement must go further to protect vulnerable borrowers.
Public education is also critical. Financial literacy that speaks directly to women’s needs in local languages, through accessible platforms, and rooted in community experiences can empower women to navigate the financial landscape with greater confidence.
And finally, there must be accountability. We cannot continue to let informal taxes and corruption drain women’s earnings while pretending the economy is growing. What looks like growth on paper is often built on the unpaid, underprotected, and overexploited labour of women.
The financial exclusion of women in Kenya is not a minor issue, it is a structural one. When we exclude women from fair, safe, and empowering financial systems, we don’t just harm them we hold back the entire country. Women's financial empowerment is not just about equality; it is about economic sense. It is time to redesign Kenya’s financial systems with women at the centre; not as an afterthought, but as the foundation of a stronger, more inclusive future.
