Mobile Payment and Mobile Money Transfer On Performance of Micro, Small and Medium Enterprises in Kenya

Abstract

According to a survey carried out by the Kajiado East Constituency development fund and contained in a document titled Kajiado East Constituency Development Fund (CDF) strategic plan 2018-2022, (2017) pointed that 75% of the MSMEs operating in the Kitengela town depend mostly on mobile money services in transaction of their business. The current study sought to bridge this gap by investigating the relationship between mobile money services and performance of MSMEs in Kenya, Kitengela, Kajiado County. The study objectives were to establish the relationship between mobile payments and performance of Micro, Small and Medium Enterprises and to determine the influence of mobile money transfer on performance of Micro, Small and Medium Enterprises in Kenya, Kitengela, Kajiado County. The study was grounded by guided Diffusion of innovation theory. The study employed descriptive research design. The target population was 817 formally registered MSMEs in Kitengela Town dealing in trade, services and manufacturing. The study employed Fisher Model to come up with sample size of 261. The study relied on primary data which was collected using questionnaires. Quantitative data was presented in frequency tables and figures while quantitative data was presented in prose form. Multiple-regression was used to test the relationship between the independent variables and dependent variable. The study results shows that mobile money payment and mobile money transfer with R2=0.559 which means that around 60% of the performance of MSMEs in Kitengela town is influences by mobile money payment and mobile money transfer. Mobile money payment and mobile money transfer had a significant positive linear relationship of R=0.748 between mobile money payment and mobile money transfer on the performance of MSMEs in Kitengela, Kajiado County. The results also indicated that the overall influence of mobile money payment and mobile money transfer on performance of MSMEs in Kitengela, Kajiado County was significant (F =254.658, p < 0.05).The study established that disbursement and repayment of loans influence mobile money transfer performance. The study concluded that mobile commerce had a statistical significance relationship with the performance of MSMEs in Kenya. The study therefore recommended that mobile services provider should seek to promote their services to encourage as many businesspeople as possible to make use of mobile money services.