An Analysis of Household Choice of Mobile Money Transfer Services in Nairobi County, Kenya
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Date
2018-10
Authors
Njuguna, Mbugua, John
Mwangi, Gachanja, Paul
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Economics, Commerce and Management
Abstract
Mobile Money Transfer Services (MMTS) has proven to be a critical component in poverty
reduction in Africa in general and Kenya in particular. Access to basic financial services through
mobile money could enhance the ability of rural households to invest in their livelihoods and
improve welfare. Kenya is a home to six service providers of mobile money making her a global
leader in usage of mobile money transfer services. Various researches conducted in Kenya
reveal that despite leading in usage of mobile money, users are faced with myriad of challenges
such as prohibitive costs on small transactions, network outages and users are not able to
switch easily from one dominant service provider to others. The objective of this study was to
investigate the household choice of Mobile Money Transfer Services over alternatives of mobile
money transfer in Nairobi County. The study adopted non-experimental research design since
the information required could not be manipulated. The study made use of both the secondary
and primary data. The results on the marginal effect indicated that the variables Age, Education
level, income, cost of transaction of MMTS and cost of transaction of alternatives to MMTS were
significant at 5% level. The findings revealed that an increase in age, education level or income
by one unit would lead to a decrease in the probability that an individual chooses the alternative
of MMTS and is more likely to choose MMTS services by 0.011, 0.112 and 0.230 respectively.
Description
A Research Article in the International Journal of Economics, Commerce and Management
Keywords
Mobile Money Transfer Services, Mobile Network Operators, Mobile phones, Information and Communications Technology
Citation
Mbugua, J., Gachanja, P. M., Muli, J. M., & Muthoga, S. K. Determinants of choice of mobile money transfer service providers in Nairobi County, Kenya.