This Policy Brief examines the influence of digital finance on remittance flows in Nairobi slums within Kenya's context. Quantitative methods were employed for data analysis of remittance flows and service usage patterns among residents in Nairobi slums. Digital financial services have significantly reduced the cost of remittances by up to 40% compared to traditional banking channels, facilitating more efficient transfers. The integration of digital finance has enhanced accessibility and affordability for low-income individuals in Nairobi slums, contributing positively to economic stability. Government policies should incentivize the adoption of digital financial services by offering subsidies or tax breaks. Collaboration with fintech companies is also recommended to improve service quality and reach wider populations.
Kipkemboi et al. (Wed,) studied this question.