The Role of Agency Banking In Improving Financial Access in Kenya: Case Study of Langata Constituency

Abstract

Purpose:The purpose of this study was to establish the effect of agency banking model on financial access in Kenya, especially for the lower income spectrum of the society. Methodology:A mixed method descriptive research design was used, which involved the use of both qualitative and quantitative research methods. The study used purposive and stratified random sampling method. Statistical package for social science programmewas also used to analyze the data. The researcher used frequency distribution, histograms and percentage to present the data. Results:Study findings revealed that agency banking plays a major role in the convergence of various banking and non-banking players to provide financial services to all end consumers of financial services. In addition, it increases the number of access points that provide financial services. Further the study indicates that the level of utilization of agency banking was high. Unique contribution to theory, practice and policy: It is highly recommended that the regulator of banks to encourage more banks to come up with agency banking as this would increase financial access. The banks also need to be more supportive to agency units through minimizing system down times as this would increase the utilization of agency banking services