FinTech-Led Digital Credit and SME Growth: Evidence from Kitui County, Kenya

Abstract

The purpose of this study was to assess how FinTech-driven digital credit access influences the growth of Small and Medium Enterprises (SMEs) in Kitui County, Kenya. It focused on credit availability, ease of access, and sufficiency. A quantitative, correlational approach was used, with data collected from 369 SMEs through stratified random sampling out of 4,732 registered businesses in Kitui and Mwingi towns. Data were gathered via structured questionnaires and analysed with descriptive statistics and multiple linear regression in IBM SPSS 27. Results showed that credit availability (β = 0.446; p < 0.001), ease of access (β = 0.480; p < 0.001), and credit sufficiency (β = 0.413; p < 0.001) had significant positive effects on SME growth. The study concludes that FinTech-led digital credit fosters SME development and recommends improving access, affordability, and sufficiency to boost enterprise growth and financial inclusion in Kitui County.