Relationship Between Mobile Money Transfer And Financial Inclusion In Kenya
Over the last decade, financial inclusion has made its way into the center stage of development policy and has been every government‘s goal in the developing economies. Many countries are working on various strategies and regulatory framework to ensure they reach all those excluded financially. For optimal resource mobilization and social economic balance, every government focus is to have an efficient and inclusive financial system for the purpose of equity in resource mobilization. With private and commercial institutions efforts to align various technological evolutions, the government is also trying to explore and implement innovative models that will deepen Kenya‘s financial sector to support savings, transactions and investment growth. The objective of this study was to investigate the relationship between mobile money transfer services and financial inclusion in Kenya. This phenomenon is keenly being achieved through Mobile Money Transfer Services initiative already taking significant and positive direction in Kenya. This study employed descriptive survey research method due to the wide range of data source identified in the research area. The study explored mobile money transfer services in Kenya with review of the supporting factors leading to development of the service in the country and how it relates to the level of financial access such as number of mobile users with access to mobile phone services and volume of transactions from the mobile transfer services. The research employed secondary data on mobile phone users in Kenya and commercial banks accounts in Kenya between 2007 and 2012 and used content analysis and descriptive analysis. The findings of the study shown that mobile money transfer services are continuously improving and growing and as it grows, the level of financial inclusion is simultaneously and proportionately growing. The study further shown that increasing the number of the customers with access to mobile phone services and enroll them to mobile money transfer service and mobile money agencies within the country has impact in increasing the reach of the financial services to the people thus raising the levels of financial inclusion. The study recommends that mobile money transfer services as a means of enhancing financial inclusion be highly supported and embraced by all financial services stakeholders in public and commercial settings in order to optimize the levels of financial inclusion in the country. Further, the study recommends that the government set up mechanism and framework to support innovation and offer substantive regulation in the mobile money transfer market to safeguard and offer security to the service users.