Microfinance interventions have been implemented in various urban slums across Africa to promote financial inclusion among youth. Nairobi's informal settlements offer a unique context for understanding how these programmes can affect young residents' economic participation and social mobility. The study employs qualitative research methods including participant observation and semi-structured interviews. Data collection was conducted through interactions with microfinance service providers and community leaders who work closely with youth recipients of financial assistance. Microfinance programmes have shown a promising trend in improving access to formal banking services among young participants, particularly those from low-income backgrounds. However, the extent of financial inclusion is influenced by factors such as programme design and recipient socio-economic status. While microfinance has demonstrated positive impacts on youth financial literacy and engagement with formal banking systems, there remains a need for tailored support to address specific challenges faced by young recipients in Nairobi's slums. Policymakers should consider implementing microfinance programmes that incorporate community-led initiatives and offer educational resources. Additionally, continuous monitoring and evaluation of these programmes are essential to ensure they meet the evolving needs of urban youth.
Chirchir Wamunyami (Tue,) studied this question.