Digital Financial Services, Women's Economic Empowerment, and Maternal Mental Health in Kakamega County, Kenya

Abstract

This policy brief explores how digital financial services (DFS) influence women's economic empowerment and maternal mental health during the perinatal period in Kakamega County, Kenya. Drawing on qualitative research with pregnant and postpartum women, the study finds that women's access to economic resources is constrained by gender norms, informal livelihoods, and caregiving responsibilities, especially during pregnancy and after childbirth. These constraints reduce income-generating opportunities and increase reliance on spousal support and DFS to manage household expenses, save, and meet urgent needs. While DFS improves access to money, facilitates savings, and supports participation in women's savings groups (chamas), it also exposes women to cycles of debt due to high-interest digital loans and short repayment periods. Repayment difficulties contribute to financial strain, anxiety, and emotional distress, particularly when loans are taken without spousal knowledge, leading to marital conflict and loss of assets. The findings highlight the need for gender-responsive digital financial inclusion strategies that strengthen women's agency while minimizing financial and psychological risks during the perinatal period