Unlocking digital finance pathways for women in cross-border trade and open-air markets in Kenya

• Aug 4, 2025
• 2 min

Women-led micro and small enterprises (WMSEs) operating in cross-border trade and open-air markets in Kenya play a vital role in the local economy but face persistent barriers to adopt digital financial services (DFS). From low digital confidence and limited access to products, to institutional neglect of their specific needs, these barriers slow down women’s financial inclusion and economic growth.

MSC led an action research initiative to address these challenges by co-creating tailored DFS solutions for these underserved segments. The project was structured around three key activities:

1. Identifying barriers to DFS adoption through in-depth research across the demand and supply sides: We investigated the obstacles that prevent women entrepreneurs from adopting digital financial services. We gained insights from both the demand and supply sides to pinpoint specific challenges.  The ‘financial diaries’ methodology was used for the research to record and analyze how these women manage their business finances.
2. Designing and prototyping women-centric financial products in collaboration with institutions like Equity Bank and KWFT: Based on the research, we designed prototypes of digital financial products tailored to women-led businesses’ unique needs, ensuring they are accessible and user-friendly.
3. Pilot testing the solutions with WMSEs: To refine offerings and generate useful insights for wider adoption

These pilots revealed how digital finance can support income stability, business growth, and financial resilience for women entrepreneurs in informal markets. Insights from this project directly informed the Gates Foundation’s Financial Services for the Poor (FSP) team, supporting their Vision 2030 goals to expand women’s meaningful access to and use of DFS across Kenya and other focus regions.

The Gates Foundation commissioned the project.