Browsing by Author "Mutai, Mirriam Chepchirchir"

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    Financial Technology and Profitability of Small and Medium Enterprises in Trans Nzoia County, Kenya
    (International Journal of Innovative Research and Advanced Studies, 2025) Mutai, Mirriam Chepchirchir; Mutwiri, Nathan Mwenda
    SMEs have continued to face various challenges despite its vital role in the economy. Most African countries depends heavily on SMEs for economic development and industrialization. The government of Kenya has identified the creation of SMEs as a strategy of achieving vision 2030. However, Republic of Kenya Baseline Survey (2019) found out that 65% of SMEs’ fail within the first three years of their operations despite the provision of interventions. The thriving economy of Trans Nzoia County is comprised largely of SMEs which are the main income earners in the region. However, the income generation of these SMEs has been dwindling and consequently, their ability to spur economic growth in the growing metropolis may be affected. The recent report from the county government of Trans Nzoia indicates that net profit margin of SMEs in the county declined from 11.3% in 2018 to 4.4% in 2022. This trend resulted directly in unemployment which then heightens social inequities and rate of crime. As such, this study sought to explore the influence online banking services on financial performance of SMEs in Trans Nzoia, County, Kenya. This study adopted and based its findings on a descriptive research design whose target population constituted of 3610 SMEs registered by ministry of trade, commerce and industry of Trans Nzoia County, Kenya. By using the Cochran, (1977) criterion, the researcher selected a sample frame of 347 SME. Stratified sampling technique was applied to group SMEs while purposive sampling technique was adopted to select respondents. The main research instrument used was the semi-structured questionnaire and included information for both dependent and independent variables .The study was anchored on Technology Acceptance Model. The researcher utilized Likert scale to gather information from questionnaires. Data collected for the research was edited, evaluated and analysed using descriptive statistics and inferential statistics with the help of statistical package for social sciences (SPSS) 24. The results indicated that online banking services significantly affects profitability of SMEs in Trans Nzoia County, Kenya. According to the study's findings, financial institutions should develop more banking agents in rural areas, because they are the most favored and used by SMEs.
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    Financial Technology And Profitability Of Small And Medium Enterprises In Trans Nzoia County, Kenya
    (Kenyatta University, 2025-05) Mutai, Mirriam Chepchirchir
    SMEs have continued to face various challenges despite its vital role in the economy. Most African countries depends heavily on SMEs for economic development and industrialization. The government of Kenya has identified the creation of SMEs as a strategy of achieving vision 2030. However, Republic of Kenya Baseline Survey (2019) found out that 65% of SMEs’ fail within the first three years of their operations despite the provision of interventions. The thriving economy of Trans Nzoia County is comprised largely of SMEs which are the main income earners in the region. However, the income generation of these SMEs has been dwindling and consequently, their ability to spur economic growth in the growing metropolis may be affected. The recent report from the county government of Trans Nzoia indicates that operating profit margins of SMEs in the county declined from 11.3% in 2018 to 4.4% in 2022. This trend resulted directly in unemployment which then heightens social inequities and rate of crime. As such, this study explored the influence that deployment of financial technology (FINTECH) had on financial performance of SMEs in Trans Nzoia, County, Kenya. The study reviewed the Agency Theory, Technology Acceptance Model, Profit Maximization Theory, and Resource Based View Theory This study adopted and based its findings on a descriptive research design whose target population constituted of 3610 SMEs registered by ministry of trade, commerce and industry of Trans Nzoia County, Kenya. By using the Cochran, (1977) criterion, the researcher selected a sample frame of 347 SME. Stratified sampling technique was applied to group SMEs while purposive sampling technique was adopted to select respondents. The main research instrument used was the semi-structured questionnaire and included information for both dependent and independent variables. The researcher utilized Likert scale to gather information from questionnaires. Data was analysed using descriptive statistics and multiple regression analysis, using statistical package for social sciences (SPSS) 24.The study found a positive and statistically significant effect of digital credit usage(β=0.385,000), online banking usage(β=1.358,000) and insurtech services usage(β= 0781,000) on profitability of SMEs in Trans Nzoia County, Kenya. Mobile payment usage (β=0.177, 0.123) was found to have positive insignificant effect on profitability. The study recommended that SMEs should continue using mobile payment systems for their operational advantages, but they should not rely solely on them to enhance profitability. Practitioners should thus prioritize the adoption and use of online banking services to streamline their financial operations. The study further suggested that, insurance technology can play a significant role in managing risks and improving financial outcomes for SMEs. Additionally, regulations should be established to protect SMEs from high transaction costs and ensure data protection, thereby encouraging the adoption of FinTech. Lastly, issuing low-cost licenses to FinTech companies can help them offer affordable products and services to SMEs, enhancing financial inclusion and profitability