FinTech-Led Digital Credit and SME Growth: Evidence from Kitui County, Kenya

Mutisya Muema Utoto; Tom Mokweri Nyamache; Gilbert Nyaga Njagi

doi:10.51317/jbe.v5i1.1017

Authors

Mutisya Muema Utoto Mount Kenya University, Kenya https://orcid.org/0009-0005-5425-7770
Tom Mokweri Nyamache Turkana University College, Kenya https://orcid.org/0009-0007-9255-0737
Gilbert Nyaga Njagi Mount Kenya University, Kenya https://orcid.org/0009-0002-2960-0950

Keywords:

Digital credit accessibility, FinTech, Kenya, SME growth

Abstract

The purpose of this study was to assess how FinTech-driven digital credit access influences the growth of Small and Medium Enterprises (SMEs) in Kitui County, Kenya. It focused on credit availability, ease of access, and sufficiency. A quantitative, correlational approach was used, with data collected from 369 SMEs through stratified random sampling out of 4,732 registered businesses in Kitui and Mwingi towns. Data were gathered via structured questionnaires and analysed with descriptive statistics and multiple linear regression in IBM SPSS 27. Results showed that credit availability (β = 0.446; p < 0.001), ease of access (β = 0.480; p < 0.001), and credit sufficiency (β = 0.413; p < 0.001) had significant positive effects on SME growth. The study concludes that FinTech-led digital credit fosters SME development and recommends improving access, affordability, and sufficiency to boost enterprise growth and financial inclusion in Kitui County.