Gender credit gap: The impact of digital financial inclusion

This study examines the impact of digital financial inclusion on gender inequality in access to credit in Kenya. We use combined FinAccess national survey data from 2019, 2021, and 2024 to compare credit access through two channels: traditional banks and digital platforms. Additionally, we examine the temporal effect of the digital revolution using time fixed effects. To identify the causal impact, we apply propensity score matching, which allows us to compare credit outcomes for similar men and women. Finally, we decompose the gender gaps in each credit channel using the Blinder-Oaxaca method, quantifying how much of the disparity is due to differences in observable characteristics versus how those differences are treated within the credit system.