Mobile Banking Services and Performance of Informal Businesses in Nairobi, Kenya

Rahab Wanjiru Waihenya and Prof. Peter Kithae
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Rahab Wanjiru Waihenya: Post Graduate Student, Management University of Africa, Kenya
Prof. Peter Kithae: Associate Professor, Management University of Africa, Kenya

International Journal of Research and Innovation in Social Science, 2022, vol. 6, issue 10, 50-58

Abstract: The paper purposed to examine the effect of mobile banking savings mobilization and credit accessibility on performance of informal businesses in Nairobi. The study was anchored on two major theories; namely; financial intermediation theory and modern economic theory which guided research objectives examined in the study. Descriptive research design was used. The population of interest consisted of 11,000 participants of informal businesses in Nairobi County. The sample size for the study was 386 participants drawn from the business categories. The method of data collection instruments involved the use of primary and secondary data. The primary data was obtained from the questionnaire and the secondary data was obtained from desk review. The researcher obtained authorization letter from the University to carry out the data collection. Data was collected using questionnaire. The study employed cross – sectional descriptive design analysis and inferential statistics. The Statistical Package for Social Sciences (SPSS version 24) was used for data analysis. Multiple regression model was used to establish the relative significance of each of the variables on the effect of savings mobilization, and credit accessibility on performance of informal businesses in Kenya. The study found out that mobile banking savings mobilization enhanced performance of their businesses to a very great extent. Credit accessibility was also found to affect informal businesses performance to a very great extent. The study concluded that saving mobilization, credit accessibility, have a positive and significant effect on performance of informal businesses in Kenya. The study recommended enhanced security and safety of data and banking transactions to safeguard the informal business owners from cybercrimes which had become rampant worldwide. Financial Institutions should ensure first grade mobile banking infrastructure to support faster transactions and enhanced security.

Date: 2022
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