Abstract

Abstract: The study sought to establish Tanzanian`s financial inclusion level, its determinant and whether the country`s financial inclusion levels have influence on the access to basic income, food, heath, employment and education service. Among the major determinants of financial inclusion are income, financial literacy and the geographical presence of financial institutions. With regard to the link between financial inclusion and livelihood indicators, it is found that greater financial inclusion promotes access to basic income, food, health and education for households for the country, with differential effect of inclusion becoming wider when banking instead of total inclusion considered. The purpose of this paper is to assess the contribution of financial inclusion to the rural livelihood households. This has been analyzed with the theoretical background on financial access and livelihood, and by analyzing the primary data collected from five wards, Named; Pawaga, Kalenga, Ismani, Nduli and Kibebe in Iringa district. The results show that, there is a significant positive relationship between Financial Inclusion and the Rural Livelihood households in Tanzania. Access to, availing of formal banking services pave the way to positive changes in the rural livelihood status of households. With regard to rural households in Tanzania the country needs aggressive financial inclusion strategies to reduce access vulnerabilities and poverty.