2025, Vol. 8, Issue 2

author(s)
Amina Omar Mohamud

abstract
This article presents a qualitative review of literature and recent cases (2015-2025) concerning how microfinance contributes to social innovation in East Africa through a combination of institutional models, multiple actor collaborations, and technology-driven approaches. The objective is to examine how these different elements contribute to creating and sustaining social innovation and developmental impact such as reducing poverty, increasing gender equality, and enhancing community resilience. Using thematic analysis of over 15 peer-reviewed journal articles, policy documents and recent case studies, we conclude that hybrid financial models combining community-level financial organizations with mobile financial platforms and cross-sector partnerships are producing financial inclusion and social innovation in ways previously unimagined. However, there are still many challenges facing the sustainability of these developments including inadequate regulatory oversight, limited digital infrastructure, and inequitable social outcomes. Recommendations for policy makers include supporting hybrid and mobile-first financial models and developing formalized outcome measurement frameworks that can help to enhance developmental impact across diverse communities.