Impact of Financial Literacy on Access to Financial Services in Kenya
Mwangi Isaac Wachira, Evelyne N. Kihiu

Abstract
The main thrust of this study is to establish the impact of financial literacy on access to financial services in Kenya using the 2009 National Financial Access (FinAccess) survey data. Using a multinomial logit approach to explain access the the four major financial service access strands, the study found that financial literacy remains low in Kenya. Besides, regression results indicate that households’ access to financial services is not based on levels of financial literacy but rather on factors such as income levels, distance from banks, age, marital status, gender, household size and level of education. However, the study established that the probability of a financially illiterate person remaining financial excluded is significantly high calling for increased investment in financial literacy programs to reverse the trend. The study recommends the development of a curriculum on financial education and administer it in local, middle level and higher learning institutions.

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