Role of Financial Service Usability in the Financial Health of Blue Economy Micro, Small and Medium Enterprises in Kenya

Abstract

Blue economy MSMEs in Kenya face persistent financial vulnerability, despite expanded access to digital and conventional financial services. Usability the clarity, speed, transparency, and supportiveness of services determine whether financial access translates into financial health. This study examined the association between the usability of financial services and the financial health of micro, small, and medium enterprises (MSMEs) within the blue economy sector in Kenya. Employing a descriptive cross-sectional research design, a structured questionnaire was distributed to 323 blue economy MSMEs located in the coastal and inland lake region counties of Kenya. Quantitative data were analyzed using SPSS, with ordinary least squares and structural equation models employed to test both direct and indirect relationships. Results showed that higher usability significantly predicted improved financial health. Financial Literacy moderation analysis improved the relationship through usage intensity and financial capability. Women-led and digitally active enterprises demonstrated stronger associations. Findings highlight the need for user-centered financial service design to enhance MSME resilience and growth in Kenya’s blue economy.