Effects of mobile money transfer services on economic growth in Kenya

Abstract

The mobile money transfer service is an aspect of a broader concept emerging in the electronic payment and banking industry referred to as Mobile Money. Economic growth is measured in nominal terms. This study sought to establish the effect of mobile money transfers on economic growth in Kenya. The objective of the study was to establish the effect of mobile money transfer service on economic growth in Kenya. This phenomenon is keenly being achieved through Mobile Money Transfer Services initiative already taking significant and positive direction in Kenya. This study employed explanatory research design which focuses on why questions by developing casual explanations. An explanatory survey design shows how variables relate to each other. It aimed at establishing a cause and effect between variables.The dependent variable was economic growth for the year 2007 to 2015 (7 years or 28 quarters). The independent variables were mobile money transfer agents, mobile money transfer customer enrollments, mobile money transfer transaction frequency and mobile money transfer deposit value. The choice of the years was because of data availability. The target population accessible was 7 years. The sample size of the study was 7 years. This implied that a census methodology was used because of the mobile money transfer existence was short. The study used secondary data sources to gather information relevant in reaching the research objectives. The secondary data was collected from theCBK and the (KNBS) Kenya National Bureau of Statistics reports. The study’s data collection source was justified by the fact that data on mobile money transfer agents, mobile money transfer customer enrollments, mobile money transfer transaction frequency and mobile money transfer deposit value were available in the CBK while the same works hand in hand with KNBS in making such statistics and estimation.