Role of Mobile Money Transactions on Revenue of Microbusiness in Kenya

Abstract

This paper determined the effect of mobile money transactions on the sales turnover of MSEs in Nakuru Town. The study used a descriptive cross sectional survey design targeting 21,139 registered MSEs located within Sub-Counties in Nakuru Town, Kenya. A stratified sampling technique was used to select 246 MSE. A questionnaire was used to collect primary data from the MSEs.  A regression model was used to determine the effect of mobile money services and sales turnover. The result revealed that mobile money transactions has a positive significant relationship with MSE sales turnover. The study recommends that mobile phone operators need to consider reduction in money transfer transaction cost, and insurance companies need to encourage payment of premiums using mobile money services. In addition, financial institutions need to offer banking services through mobile phones such as deposits, withdrawals and loan applications with a reduced cost.

Keywords: key words, Mobile Money Transactions, Revenue, Microbusinesses