Community-Driven FinTech Models for Sustainable Development in Western Kenya

William Wanyonyi Wamalwa
Masinde Muliro University of Science and Technology
Email: williamwamalwa1978@gmail.com

Abstract: This study explores the contribution of community-driven financial technology (Fin- Tech) models to sustainable development in Western Kenya, a region where rural entrepreneurs face persistent barriers to financial access. Weak infrastructure, limited credit opportunities, and low digital literacy have restricted growth, deepened inequality, and slowed progress toward inclusive development. Anchored in the Sustainable Development Goals poverty re-duction (SDG 1), decent work and economic growth (SDG 8), and innovation and infrastructure (SDG 9) the research investigates how localized financial innovations can enhance resilience and opportunity. A mixed methods design was employed. Surveys were conducted with 200 entrepreneurs, alongside 20 interviews with community financial leaders, and a review of six technology-enabled finance initiatives. Qualitative data were analyzed thematically using NVivo, while quantitative results were processed in SPSS to identify trends and patterns. The findings show that mobile-accessible platforms remain the most preferred financing option in Western Kenya, especially those that do not rely on collateral. Nonetheless, persistent challenges include low trust in formal financial institutions and limited digital literacy. The study concludes that localized FinTech solutions—such as digital savings groups, USSD-based microfinance systems, and credit-scoring innovations hold significant potential for promoting inclusion and resilience in the region. It recommends stronger public–private collaboration, targeted digital literacy programs, and the creation of county-level FinTech hubs to scale innovation, strengthen entrepreneurship, and align community finance with sustainable development goals.