| dc.description.abstract | This study sets to model the uptake of mobile payments by MSMEs in Kenya. The objectives
of the study were: to establish the relevant determining and moderating factors for technology
adoption of mobile payments by MSMEs in Kenya; to establish the external factors affecting
acceptance of mobile payments by MSME‟s in Kenya; to use the factors to formulate a model
for technology adoption of mobile payments by MSMEs in Kenya and; to validate the model.
The study utilized a descriptive survey design. The target population comprised persons
drawn from various SMEs categories of businesses (boutiques, clothes materials shops, retail
shops, retail shop and MPESA shops) sampled from Kariobangi and Uhuru Markets, Nairobi.
The target population comprised 95 persons. These two markets were targeted for purposes of
delimiting the study in scope. Furthermore, there is a huge concentration of business that use
lipa na MPESA in these markets. The researcher used proportionate stratified sampling. The
researcher used the simplified formula to calculate sample size that was put forward by
Yamane (1967). The formula employed is: n=N/ (1+N (e) 2 (where n = sample size, N =
population size and e =the level of precision (0.05)). As such, the researcher sampled 90
person from the 5 strata. Individuals within each strata were randomly sampled. The study
relied on primary data that will be collected using a structured questionnaire as the research
instrument. The questionnaire was divided into through sections that correspond to the
research questions of the study. An extra section on the level of adoption of Lipa na MPESA
by SMEs was included in the study. Before analysis, the completed questionnaires were
checked for completeness and consistency. The data collected was analysed using descriptive
and inferential statistics and presented in Tables and Figures. F and t-tests were used to test
the hypotheses. From the findings, it can be concluded that various relevant and external
factor determine the adoption of mobile payments by MSMEs in Kenya and understanding
them could help enhance adoption of such payments. As such, the most important factors are
pegged to cost reduction, risk reduction and perceived importance and convenience over
other payment methods. Understanding these factors may augment the level of adoption of
mobile payments in Kenya. The study therefore recommends as follows: Managers of
Safaricom Ltd should understand the factors that influence the adoption of mobile payments
as highlighted in this study and institute ways of ensuring that they are well understood and
taken into consideration. This should include regular information dissemination on mobile
money payments. There should be regular review of prices and upgrading of the payment
system to match up the ever increasing needs of MSMEs. In addition, there should always be
in place robust customer care services to ensure that the image of Lipa na MPESA is
maintained since such an image would safeguard the extent to which its clients would
continue subscribing to it. Lastly, Safaricom Ltd. should continuously invent services that
could add value to Lipa na MPESA as that would increase its value in Kenya. This study was
based on only one mobile money payment service (Lipa na MPESA) of Safaricom Ltd. The
Researcher therefore recommends comparative studies focusing on other similar payment
services offered by other mobile telephony service providers in Kenya. | en_US |
