| dc.description.abstract | Mobile money, also referred to as mobile payment, mobile money transfer and mobile wallet, generally refers to services operated and performed from a mobile device such as mobile phone, credit or debit cards; the intersection of both banking and telecommunications services. It involves a diverse set of stakeholders from both mobile phone operators and financial service institutions. Mobile money services have been defined as electronic money accounts that can be accessed via mobile phone. Mobile money services offers secure and convenient means for banked and unbanked people to send and receive money with mobile phones at home and abroad; anywhere at any time. It contains features such as mobile wallet, mobile transfer, airtime transfers and mobile banking. The study aimed at establishing the effect mobile money has on non-performing loans amongst commercial banks The study used a descriptive research design. Descriptive research design describes the characteristics of the variables interest in a situation. The goal of a descriptive study was to offer the researcher a profile or descriptive relevant aspects of the phenomenon of interest from an individual organizational industry oriented or other perspective. It aimed at explaining how one variable produces changes in the other. This study sought to explain the significance of interest rate, growth in GDP, inflation, exchange rate or unemployment in the economy on the level of Non-Performing Loans hence it is a cause-effect investigation. The study sole used secondary data collected from the 43 commercial banks in Kenya. Multiple regression analysis was used in establishing the significance of the relationship so sought. The findings established that GPD growth has a negative relationship with non-performing loans and has statistical significance at 5% level of significance in causing the changes in non-performing loans in commercial banks in Kenya. A unit increase in GDP growth will lead to 0.02176 units decrease in non-performing loans. The study contends that growth in the gross domestic product usually increases the income which ultimately enhances the loan payment capacity of the borrower which in turn contributes to lower bad loan and vice versa. The study also established positive association between unemployment rate and non-performing loans. There is statistical significance between unemployment rate and non-performing loans at 5% level of significance. A unit increase in unemployment rate will lead to 0.39969 units increase in non-performing loans. The result conforms to the theory that an increase in the unemployment in the country negatively affects the incomes of the individuals which increases their debt burden similarly an increased unemployment in the economy also negatively affects the demand of the products of firms which ultimately affects the production/sales of the firms, this ultimately leads to decline in revenues of the firms and a fragile debt conditions. As such banks should invest more on technology | en_US |
