This study explored the relationship between digital financial services (DFS), women’s economic empowerment (WEE), and maternal stress in rural Kakamega, Kenya. Drawing on data from a randomized control trial of a mobile phone-based health insurance and savings program, researchers conducted two rounds of qualitative research in 2022, including in-depth interviews, focus group discussions, key informant interviews, and participant observations. The findings show that access to DFS—such as mobile money, digital savings, credit schemes, and health insurance—helped improve women’s financial independence, reduced financial stress, eased marital conflicts, and enhanced resilience to mental stress. However, the benefits were not universal. Barriers such as lack of mobile phone ownership, low financial literacy, limited income opportunities, and high DFS loan interest rates negatively impacted some women. Many reported falling into debt traps due to an inability to repay soft loans, worsening both their financial and mental health. The study concludes that financial literacy and spousal support are critical for maximizing the benefits of DFS. To truly empower women—particularly during the vulnerable perinatal period—financial inclusion programs must also engage men and address foundational issues like literacy and economic opportunity.
Author: Caroline, Wainaina; Emmy, Igonya; Wendy, Janssens; Janerose, Kweyu; Estelle, Sidze
Type: Working Paper
Year: 2024
