Geographies of Monetary Exclusion in Kenyan Slums: Financial Inclusion in Question

Abstract

Financial inclusion has become a prominent development policy objective. Its promotion rests on the understanding that poverty and underdevelopment mainly result from financial constraints that individuals face. Better access to financial services, in particular via the use of mobile money services, is supposed to lift these constraints and allow for growth and development. After outlining this dominant approach and detailing its theory of change, this article challenges it on the basis of the mesoeconomic study (at territorial level) of areas particularly targeted by financial inclusion policies: Kenyan informal settlements. The study of their geography of money shows how the socio‐spatial flows of money shape people's economic constraints and opportunities. Based on this empirical account, it is argued that the poor are, first and foremost, in a situation of monetary exclusion, rather than being primarily financially constrained. The article conceptualizes monetary exclusion and highlights the theory and policy implications of this situation.

Financial vulnerability and financial literacy in Paraguay: the need of a transversal approach of public policy

“…Secondly, we study the relationship between financial inclusion and financial vulnerability in Paraguay. Several empirical studies have recently presented evidence that holding a financial product from a formal financial institution does not necessarily translate into a better financial situation (Demirgüç-Kunt et al, 2017;Gallup, 2018;Mader, 2018;Arellano et al, 2019;Dissaux, 2022). Our paper sheds new light on an enriching and inconclusive debate on the role of financial inclusion in financial vulnerability.…”

Complementary currencies and entrepreneurship: Sustaining micro‐entrepreneurs in Kenyan informal settlements

“…These densely populated areas often have inadequate access to water, sanitation, energy, and medical services. Residents frequently need to travel outside these settlements to secure employment and access vital services (Dissaux, 2023). To improve living conditions, Grassroots Economics (GE), a small grassroots organization, began its first complementary currency pilot project called Eco‐Pesa, in three villages within the Kongowea location in Mombasa County in 2010 (Ruddick et al, 2015).…”

“…These densely populated areas often have inadequate access to water, sanitation, energy, and medical services. Residents frequently need to travel outside these settlements to secure employment and access vital services (Dissaux, 2023).…”

“…While complementary currencies have gained attention from economists (Blanc, 2011; Vallet, 2016), development scientists (Dissaux, 2023; Fare & Ahmed, 2017; Gomez & Helmsing, 2008), and sociologists (Motta et al, 2017; Zelizer, 1998), their implications in management and entrepreneurship studies have remained relatively unexplored (Cohen, 2017; Meyer & Hudon, 2017, 2019; Siqueira et al, 2020). Studying complementary currencies in the context of entrepreneurship research is important because these alternative monetary systems and supplementary payment schemes offer additional resources in resource‐scarce environments, where a lack of monetary resources often constrains entrepreneurial activities.…”

“…Establishing a dialog between the complementary currency and the entrepreneurship literature is therefore important to unlock the potential of using complementary currencies as an alternative monetary system in supporting and sustaining entrepreneurs. Taking an entrepreneurship perspective is also pertinent for exploring the practices and entrepreneurial uses of complementary currencies and their contribution to entrepreneurship and community development (Dissaux, 2023; Larue et al, 2022; Ruddick et al, 2015).…”