International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Call for Papers | Fully Refereed | Open Access | Double Blind Peer Reviewed

ISSN: 2319-7064




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Research Paper | Economics | Kenya | Volume 5 Issue 10, October 2016 | Rating: 7.1 / 10


Effect of Agency Banking on Financial Inclusion in Kenya

Mark Kariuki Munoru


Abstract: The objectives of this study were to analyze the effects of agency banking on financial inclusion in Kenya. Analyze and evaluate whether effects of cash deposit, payment of retirement and social benefits by customer, payment of bills and banking agencies engaged through agency banking transactions on financial inclusion in Kenya. The study was based on secondary data from the CBK. The sample size was Kenya Banking sector comprising of 13 banks out of 44 commercial banks as at December 2014. Data analysis entailed collection of data, compilation and editing of data for completeness using e-views statistical software. The study used inferential statistics, normality test, correlation analysis regression analysis, unit root test and error correction model to investigate the relationship between financial inclusion and agency banking. From the findings, agent banking had a positive and insignificant relationship with the financial inclusion. There was no causality between the variables. It was concluded that the financial inclusion initiative had no effect to agency banking on financial inclusion in Kenya. It was recommended that government to implement and always asses impact of agency banking on financial inclusion initiative and policies to be analyzed frequently.


Keywords: Agency banking, Financial inclusion, Kenya


Edition: Volume 5 Issue 10, October 2016,


Pages: 1380 - 1397



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