Effect of Mobile Money Transactions on Financial Performance of Small and Medium Enterprises in Nakuru Central Business District

Abstract

The inception of mobile phone financial transaction has brought a lot of benefits to SMEs. It has made money transfer to be available at a low cost compared to the traditional banking system where some transactions would be done within the premises of the bank. As a result, there was a need to study effects of mobile money transactions on financial performance of Small and Medium enterprises. The aim of this study was to find out the effect of mobile money transactions on financial performance of Small and Medium enterprises in Nakuru town Central business district (CBD). The study employed descriptive research design. The study sampled 120 out of 640 businesses using purposive sampling technique. Questionnaire was used as data collection instrument. The results of the study indicated that mobile money transactions have a significant effect on sales revenue.

Keywords: Mobile phone financial transactions, financial performance of SMEs, Sales revenue, Nakuru town Central Business District.