Influence of access to agent banking services on rural communities in Kenya: a case of Ololung’a division, Narok County
Abstract
The agent banking model is one in which banks provide financial services through
non bank agents, such as grocery stores, retail outlets, post offices, pharmacies, or
lottery outlets. Agent banking is quickly becoming recognized as a viable strategy in
many countries for extending formal financial services into poor and rural areas. The
agency banking in Kenya guidelines were enacted in 2010. Banks must first apply to
central bank of Kenya to get approval to conduct agency banking business. The
general Objective of the study was to establish the influence of agent banking
services on rural communities in Kenya with reference to Ololung’a Division, Narok
County. This study was guided by the following specific objectives, To investigate
the impact of agent banking services on rural communities. To examine how agent
banking influences liquidity on rural communities. To determine the accessibility of
agent banking providers on rural communities. The researcher employed descriptive
design. Descriptive design sought to uncover the nature of factors involved in a given
situation, the degree in which it existed and the relationship between them. The study
population constituted Agents from Cooperative Bank 102, Equity Bank 133, Kenya
Commercial bank 152 and Post Bank 113. The target population of the study was 850
respondents, the study adopted fisher’s model of sample selection and acquired a
sample size of 384 respondents. The study used simple random sampling technique
to draw a sample from the study population. Data collection was from two main
sources; primary and secondary. Secondary sources included relevant documents and
reports. The semi –structured questionnaire and structured questionnaire were the
main instrument of the study administered to the respondents. It involved both
qualitative and quantitative approaches. Open and closed ended questionnaires were
administered, this was because Close ended questionnaires were easier to analyze
since they were in an immediate usable form and again each item was followed by
alternative answers. Interview Guides were used to generate information from the
respondents. The researcher conducted a face to face interview with key respondents
to the study. The study’s major conclusion was that customers must be supported in
making there first transactions before they are able to transact independently. The
study concluded that there was need to adopt an integrated payment system that was
user friendly as a critical component of financial inclusion. The studies main
recommendation was that, there was need to adopt an integrated payment system that
was user friendly as a critical component of financial inclusion. The study further
recommended that there was need to facilitate more Agent banking in rural areas in
order to improve the economy and equally increase financial inclusion. The
suggestions for future researchers should investigate the effect of Agent banking
retail points as avenues that can offer saving services
Publisher
University of Nairobi
Collections
- Faculty of Education (FEd) [5964]