Knowledge as a gateway to financial inclusion: women’s characteristics and VSLA participation in Taita Taveta County, Kenya

Abstract

Village Savings and Loan Associations (VSLAs) are widely promoted as inclusive, community-based financial mechanisms for rural women. However, participation within communities is often uneven suggesting that structural and informational factors shape who becomes involved. This study examines the pathway linking women’s socio-demographic and economic characteristics to knowledge of VSLAs, and how such knowledge influences participation in Tausa Sub-Location, Taita Taveta County, Kenya. Using cross-sectional data from 464 women, the study applied descriptive statistics, chi-square tests and logistic regression analysis to assess associations between women’s characteristics, knowledge levels and VSLA membership. Just over half of respondents were knowledgeable about VSLAs, and a similar proportion were active members. Knowledge was socially patterned: women who were older, married, economically active, engaged in farming or owned land were significantly more likely to be aware of VSLAs. Knowledge emerged as a decisive determinant of participation, with women demonstrating high awareness being substantially more likely to be members. The findings reveal a sequential dynamic in which socio-demographic and economic positioning shapes informational access and informational access functions as a gateway to financial participation. While VSLAs are designed as grassroots and inclusive institutions, disparities in knowledge may reproduce existing inequalities within communities. Expanding equitable participation therefore requires targeted strategies that address informational barriers alongside financial constraints. This study contributes context-specific evidence on the informational pathway to community-based financial inclusion and highlights the need for outreach approaches that intentionally engage younger and economically marginalized women.