Relationship between mobile banking 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 study sought to determine the relationship between mobile banking and financial inclusion in Kenya. The study used secondary data obtained from Central Bank of Kenya and communication authority of kenya for the period 2006 to 2014. Descriptive research design was adopted by the study. Multiple regression analysis was used to obtain the relationship between financial inclusion and mobile banking services. The significance of the results obtained was determined using analysis of the variance. The study found that mobile money transfer services have positive effect on financial inclusion in Kenya. The study further found that mobile banking services have contributed significantly to deepening financial markets mostly out of financial products related to mobile money developed. Mobile banking services were also found to have contributed significantly to financial access in Kenya. The study recommended that the Central Bank of Kenya to formulate policies to guide the operations of mobile money services and ensure that mobile operators charge lowest costs, consequently promoting penetration of mobile money services.