How Mobile Banking Technology Affects Kenyan Performance: A Case of Mobile Phone Companies in Kenya

Abstract

Mobile banking is an innovative mobile banking service for unbanked that has some effects on the economic and social performance of a country. It is a tool that gives a chance to individuals, businesses and corporations to apply the transaction, speculative and precautionary demand for money. Kenya has been recognized worldwide as a giant of mobile banking locally known as Mpesa ‘M’ means mobile and ‘pesa’ is a Swahili word meaning cash this is specifically for Safaricom. The question of the whole issue of mobile banking is does it have any economic and social value in the country? The purpose of this study was to investigate the how mobile banking technology affects the Kenyan performance. The study employed explanatory design. The target population consisted of 381 respondents and the sample size was 170 respondents from the mobile phone companies in Kenya. The research adopted stratified random sampling technique. The study used primary data which was collected using self-administered questionnaires. Reliability of the instrument was tested using Cronbach’s alpha reliability coefficient of 0.7 which was considered acceptable. Data was analyzed using inferential statistics simple linear regression to test the hypothesis. Then data analysis used strata statistical package. The results were presented using tables. Mobile technology was found to be significant in explaining the variation of Kenyan social and economic performance. The study concluded that there is need for the mobile phone companies to invest more in modern technology to cope with the changes that are necessary to enhance performance. Finally, the study recommended that further research should be done by replicating the same study in commercial bank mobile banking.