Financial Inclusion and Exclusion in Kenya - Access to Financial Services by County

Access to financial services is key to a country's growth and development and determines the financial health of the population. 

According to the 2024 FinAccess Survey^[1], an individual is considered to have access to financial services if they have a financial account in their name. These could be bank accounts, mobile money accounts such as M-PESA, or services such as NSSF and HELB.

Quick Facts

1. Financial inclusion in Kenya was at 84.8% in 2024.
2. Financial exclusion was at 9.9% in 2024.
3. The share of the population using mobile money was 52.6% in 2024.
4. Credit uptake reached 64% in 2024.
5. The population of savers was 68.1%.
6. The percentage of borrowers who defaulted on their loans was 16.6% in 2024.
7. The share of the population that was financially literate was 42.1%
8. The share of Kenyans who are financially healthy was 18.3%.
9. Financial inclusion for people with disabilities was 77.9%.

A majority of Kenyans have access to financial services

In 2024, the share of the population with access to formal financial services was 84.8%, denoting the level of financial inclusion in Kenya.

Formal financial inclusion highlights access to financial services offered by regulated and registered entities. It includes bank services and products, mobile money services, insurance, NSSF, SACCO services, mobile money apps, HELB, and many more.

On the other hand, the percentage of people with access to informal financial services—activities and products of unregistered and unregulated groups such as Chamas—was 5.2% in 2024, an increase from 4.7% in 2021.

The rate of financial exclusion in Kenya was 9.9%. This rate reflects individuals with no access to formal and informal financial services who keep money in secret places or rely on family, neighbors, and friends.

The gap in financial inclusion between men and women in Kenya has declined

Financial inclusion in Kenya is higher in men than women. However, the gap in financial inclusion has declined over the years, with the share of men with access to formal financial services being almost equal to that of women.

In 2024, the share of women with access to financial services was 84.1%, while it was 85.7% for men.

In 2006, the gap in access was higher, with financial inclusion significantly higher in men (33.2%) than in women (20.5%). 

Similarly, the gap in financial exclusion between men and women in Kenya has narrowed over the years. In 2024, financial exclusion was higher in women at 10% than in men at 9.8%.

Financial inclusion was higher in urban than rural areas

The share of the population with formal access to financial services in urban areas was 91.3% in 2024, while in rural areas it was 80.2%.

Financial access significantly rose in both rural and urban areas between 2006 and 2024. In 2006, formal financial inclusion in urban areas was 35.5%, while in rural areas, it was 23.8%.

However, access to informal financial services was higher in rural than urban areas. In rural areas, the share of the population with access to informal financial services was 7.2%, while in urban areas, it was 2.5%.

In addition, financial exclusion was higher in rural areas than in urban areas. In 2024, the rate of financial exclusion in rural areas was 12.6%, while in urban areas, it was 6.2%.

Access to formal financial services by county

Kiambu County has the highest level of financial inclusion in Kenya, with 94% of residents having access to formal financial services. Other countries with high financial inclusion include:

1. Nairobi – 93.7
2. Kirinyaga – 92.8
3. Nyeri – 91.6
4. Isiolo – 91.5
5. Kisumu – 91.2
6. Embu – 90.9
7. Taita Taveta – 90.5
8. Uasin Gishu – 90.2

The county with the lowest level of financial inclusion was West Pokot, with only 48.5% of the population having access to formal financial services. Others include: 

1. Turkana – 65.9
2. Migori – 72.9
3. Narok – 73.1
4. Baringo – 76.3
5. Busia – 76.9
6. Tana River – 77.4
7. Trans Nzoia – 77.5
8. Kilifi – 77.9
9. Bungoma – 78.5
10. Kericho – 79
11. Vihiga – 79.1
12. Marsabit – 79.1
13. Kakamega – 79.6
14. Kwale – 79.7

Financial exclusion in Kenya by county

Individuals are financially excluded if they do not use any formal or informal financial services. These individuals tend to keep their money in secret places of rely on family, neighbors, and friends.

Two key barriers to financial inclusion lead to exclusion: the lack of a mobile phone and an identity card. Individuals need identity cards to register financial accounts in Kenya. 

Financial exclusion in Kenya was highest in Turkana County, where 31.5% of the population did not have access to any financial services in 2024.

Financial exclusion was also high in West Pokot and Trans Nzoia, where 27% and 21% of the population, respectively, were excluded from financial services.

Financial exclusion was lowest in Nyandarua County, where only 2.6% of the population lacks access to financial services. Kiambu County also had low levels of financial exclusion, at 2.7%.

Others include:

1. Kirinyaga – 4.0
2. Embu – 4.5
3. Tharaka Nithi – 4.7 
4. Meru – 4.7
5. Nairobi – 5.1
6. Isiolo – 5.8
7. Nyeri – 6.0
8. Kisumu – 6.3
9. Taita Taveta – 6.4
10. Mombasa – 6.8

See Also

1. The Best Counties in Kenya to Live in - Basic Access Index
2. Human Development Index in Kenya by County

References