Digital Payment Platforms and Financial Inclusion Among Small-Scale Tea Farmers in the Western Tea-Growing Counties of Kenya

In recent years, the financial technology (FinTech) sector has transformed the way financial services are delivered around the world, and digital payment platforms are one of the most promising ways to improve access to formal financial services. Yet, there is not a lot of evidence available on the effectiveness of these platforms in enhancing financial inclusion in rural agriculture. The study focused on the impact of digital payment platforms on the financial inclusion of small-scale tea farmers in five of the Western tea growing counties of Kenya: Kericho, Bomet, Nandi, Kisii and Nyamira. The study used a correlational research design based on the Financial inclusion Theory, Technology Acceptance Model, and Diffusion of Innovations Theory. Stratified random sampling was used to obtain a sample of 384 small-scale tea farmers from a population of 420,000 small-scale farmers, according to Krecjie and Morgan formula. Data were gathered through a structured questionnaire which was pre-tested for content validity and reliability (Cronbach α ≥ 0.70). Data was analysed using descriptive statistics, Pearson correlation and multiple linear regression with SPSS package program version 29. The results showed that digital payment platforms had a statistically significant positive impact on financial inclusion (β = 0.811, p<0.001). The control variables (smartphone ownership, years of farming experience and cooperative membership) all yielded p values > 0.005 indicating their non-significant effect on financial inclusion. The regression model explained 66.7% of the variance for financial inclusion (R² = 0.667, p<0.001). The study found that digital payment platforms have a significant effect on the financial inclusion of small scale tea growers by making payment easier, facilitating financial book-keeping and linking the farmers to formal financial systems. The study recommends need to enhance the digital payment infrastructure in rural areas, support the implementation of digital literacy programs and create digital payment platforms that meet the needs of farmers. These findings inform policy formulation, enhance responsible FinTech innovation and inclusive finance development in the underserved African agricultural communities in Kenya.