Financial Technology and Credit Usage among Small and Medium Enterprises in Kisumu Central Business District, Kenya


  • Billmartin Okeyo Abbott University of Nairobi


FinTech is one of the new technologies of financial innovations and solutions which are fueling financial accessibility especially in the businesses of developing countries. Therefore, this has led to growth in consumer demand for digital financial services as innovations in the financial sector continue to advance. However, the emergence of FinTech usage has been received both as an opportunity for businesses and as a threat to other lending institutions like banks and microfinance institutions among others. Digital credit consumers have been faced with many challenges including late repayment and loan defaulter due to lack of transparency in the repayment period and the high amount of interest charged. This study therefore, sought to address the issue of financial technology and credit usage among small and medium enterprises in Kisumu central business district in Kenya. The study used descriptive research design. It targeted all the 6,688 SMEs registered to operate in the CBD of Kisumu in the year 2020 from which sample size of 100 SMEs was picked. This study gathered primary data through use of a questionnaire. The collected data was then analyzed using descriptive and inferential statistics. The findings indicated that amount of credit requested from digital lenders affected credit usage significantly. Moreover, number of branches/agents of FinTech available were also found to be a strong determinant of credit usage among the SMEs operating in Kisumu CBD. Conversely, the results showed that number of subscriptions and amount remitted do not have significant effect on credit usage. The SMEs are therefore, advised to adopt and use FinTech in order to enhance their credit usage in business operations.

Keywords: FinTech, Credit Usage, SMEs, Digital Lenders, Kisumu CBD

Author Biography

Billmartin Okeyo Abbott, University of Nairobi

Postgraduate Student


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How to Cite

Abbott, B. O. (2021). Financial Technology and Credit Usage among Small and Medium Enterprises in Kisumu Central Business District, Kenya. Journal of Finance and Accounting, 5(1), 28–38. Retrieved from