Mobile Financial Services and Mobile Commerce on Performance of Micro, Small and Medium Enterprises in Kenya: A Case Study of Kitengela, Kajiado County

Abstract

Micro, Small and Medium Enterprises (MSMEs) in Kenya face many unique challenges such as reluctance by commercial banks to meet their financial needs like payment and transactional services. The main purpose of this study was to establish the relationship between mobile financial services and mobile commerce services on performance of MSMEs in Kenya, in Kitengela, Kajiado County. The study was anchored on Technology, Organization and Environment (TOE) Framework and supported by Actor Network Theory (ANT) 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. The study result shows that mobile financial and mobile commerce services with R2 =0.488 which means that around 49% of the performance of MSMEs in Kitengela town is influenced by mobile financial and mobile commerce services. Mobile finance and mobile commerce services had a significant positive linear relationship of R=0.699 between mobile finance and mobile commerce services on the performance of MSMEs in Kitengela, Kajiado County. The results also indicated that the overall influence of mobile finance and mobile commerce services on performance of MSMEs in Kitengela, Kajiado County was significant (F =191.918, p < 0.05). The study result shows that there was linear relationship between mobile financial services and mobile commerce services on performance of MSMEs in Kitengela, Kajiado County. The study recommends that mobile money service providers should identify platforms capable of minimal delays and fast responses to increase adoption rates across the country