The Role of Mobile Banking on the Growth of Micro and Small Enterprises in Kitui County

Abstract

Mobile Banking has marked a new frontier in banking sector and mobile phone technology with an ever increasing number of Micro and Small Enterprises using it in their transactions to enhance performance. However it is not clear on the role the Mobile Banking plays on the growth of MSEs. Majority of the MSEs owners use mobile banking as opposed to formal banking for their daily transactions. The study established that the use of Mobile Banking contributed significantly to the growth of MSEs through increased sales volume and net profits. In respect of conceptual framework, Mobile Banking transaction costs, accessibility and security have all been shown not to affect MSEs growth significantly through the service despite increased enrollment in Mobile Banking services. This study achieved its objective and obtained detailed information arising from the role of Mobile banking on the growth of MSEs. Keywards: Mobile Banking, MSEs, Accessibility, Costs, Security, Kitui, MSEs Growh.