Accounting Implications on Financial Deepening in Kenya

Case of Kitui County

Abstract

Purpose: Financial deepening linked to Kenya’s financial ingenuity, M-Pesa has positively impacted livelihoods. The study examined accounting implications on financial deepening in Kenya’s Kitui County.

Design/methodology/approach: This was a case study design survey and sought to examine the complex relationship between accounting and financial deepening in Kitui County.

Findings: Based on the results, the overall fitted model was significant F (3, 26) = 6.634, p < .05, R² = .434). This clearly showed that accounting for costs, revenue, and balance sheet items had a positive significant impact on financial deepening which enhanced the livelihoods of the shop owners.

Originality/Value: Mobile platforms have created an opportunity and enhanced financial deepening in many of Africa's rural setups such as Kitui County in Kenya. However, financial deepening can only be sustained through wealth creation or profit maximization. This implies that mobile platforms are means and not the end, hence the need to examine accounting and financial deepening relationships.