Victoria Wanjiku Wokabi|Olanrewaju Isola Fatoki
DETERMINANTS OF FINANCIAL INCLUSION IN EAST AFRICA
KCA University
growing focus financial inclusion among scholars policy circlesthis study sought analyse underlying determinants financial inclusion among five east african countrieskenya uganda tanzania rwanda burundithe general objective study determine determinants financial inclusion east africaspecifically study examined effect rural population unemployment rates income level interest rates financial inclusionrural population presented proportion countrys population lives rural areas unemployment rate proportion countrys population unemployed income annual growth rate gdp per capita interest rate real interest rate per yearthe study used domestic credit private sector banks measure financial inclusion research design used panel data analysis secondary data collected world development indicators database world bankthe 17 year period covered study spanned 2000 2016the data analysed stata output analysis provided basis findings recommendationsafter conducting diagnostic tests model adopted study fixed effects modelthe study found rural population income significant determinants financial inclusion rural population negatively related financial inclusionthis means higher rural population country less inclusive financial system isunemployment though statistically insignificant negative relationship financial inclusioninterest rates positive insignificant relationship financial inclusionthe study recommended focused financial literacy efforts increased rural areas within east africa promote inclusion effortsinterest rates powerful policy tool encourage savings credit facility sourcing banking sector