Theses and Dissertations
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Item Fintech and financial inclusion among households in Kibera slums, Kenya(KCA University, 2025) Sugow, Nafisa A.This study investigated the influence of financial technology on financial inclusion among informal households in Kibera slums, Nairobi County. The focus was on three fintech dimensions: mobile banking, digital credit, and digital payments. The specific objectives of the study were: (i) to examine the effect of mobile banking on financial inclusion; (ii) to assess the influence of digital credit on financial inclusion; and (iii) to determine the contribution of digital payments to financial inclusion. The study was guided by Financial Intermediation Theory, Diffusion of Innovations Theory, and Social Capital Theory, which collectively provided a conceptual foundation for understanding how technology-driven financial services can bridge access gaps in marginalized urban settings. A descriptive and explanatory research design was adopted, and data were collected using structured questionnaires administered to a randomly selected sample of 400 households. Out of these, 328 responses were deemed valid and subjected to quantitative analysis. Diagnostic tests confirmed that the regression model met key assumptions, including linearity, normality, homoscedasticity, and absence of multicollinearity. Multiple regression analysis was used to determine the individual and joint effects of the fintech variables on financial inclusion. The results revealed that mobile banking had the strongest positive effect, accounting for 48 percent of the explained variance in financial inclusion (β = 0.693, p = .000). Digital credit showed a moderate but statistically significant contribution, explaining 22 percent of the variance (β = 0.466, p = .000). Digital payments had a weaker yet significant effect, accounting for 6 percent of the variance (β = 0.246, p = .000). The combined model explained 51.2 percent of the variation in financial inclusion (R² = 0.512, F = 113.239, p = .000), confirming that all three fintech dimensions contributed meaningfully to financial access among informal households. The study concluded that mobile banking and digital credit are the most effective fintech tools for promoting financial inclusion in informal settlements. Mobile banking was found to be widely adopted due to its accessibility, affordability, and ability to facilitate savings and transfers without requiring formal banking infrastructure. Digital credit, while impactful, was constrained by limitations in borrower profiling and financial literacy. Digital payments contributed positively but had limited standalone influence, suggesting that their effectiveness depends on integration with other financial services. Based on these findings, the study recommends that policymakers prioritize the expansion of mobile banking infrastructure and enforce regulatory safeguards to ensure responsible digital credit provision. Financial institutions should invest in adaptive credit scoring models that reflect informal income patterns and design user-friendly platforms to accommodate low-literacy populations. Efforts should also be made to increase merchant acceptance of digital payments and integrate them with broader financial products. The study further recommends targeted financial literacy programs to enhance user understanding and responsible usage of fintech services. Finally, the study calls for future research to explore the long-term effects of fintech adoption on financial resilience, savings behavior, and economic mobility. Comparative studies across different regulatory environments and mixed-methods approaches would enrich understanding and inform policy design. The findings contribute to both theory and practice by quantifying the differentiated impact of fintech modalities and offering actionable insights for inclusive financial development.Item Effect Of Mobile Phone Banking On Performance Of Commercial Banks In Kenya(2016) Abong'o, Donna A.Globalization is making the financial world more interconnected and organizations are continuously coming up with financial products that are very innovative. The world has also been taken by storm through financial interconnectivity and information technology which has now engulfed data transfer across all spheres putting the command in the hands of individuals through mobile handsets. This has gone to change the way business is done bringing with it speed, efficiency and effectiveness which transmits into economic growth and development. Various initiatives use the mobile phone to provide financial services to those without access to traditional banks everywhere in the world. Mobile banking services give a high potential to expand financial services particularly payment services to the poor. The services also provide a cost effective and convenient way to access bank accounts. The general objective of my study was to investigate the effect of mobile phone banking on performance of Commercial banks in Kenya. The population of my study was the 43 Commercial banks operating in Kenya as at 31st December 2014 with the sample being 10 in number. The sample size was 200 respondents. Descriptive research method was employed. To determine the reliability of the tools employed, the Cronbach’s alpha test was conducted. To determine the linear relationship between all the study variables, Spearman’s Rank Correlation Coefficient was used. Tests to determine violation of OLS assumptions were carried out. Results presented in the regression model summary indicated that the R squared for the regression was 0.458.The ANOVA indicated that F value was 29.532 and was significant at 95% confidence level. Results showed that storage of monies for safe keeping and transfer of monies from one owner to another were not a significant predictor of performance of banks. However, exchange of forms of money through mobile banking and investment of monies had a significant effect on performance of banks. The main recommendations were that apart from KCB and Equity, the other commercial banks in Kenya should come up with products and services similar to CBA’S Mshwari and that local commercial banks in Kenya should diversify their investments before technology pushes them out of business. A future researcher can conduct a research with the aim of determining the effects of mobile payments on other business organizations.Item Factors Of Mobile Banking Affecting Performance Of Tier One Banks In Kenya(KCA University, 2021) Kinuthia, Esther W.The study sought to determine the factors of mobile banking that affect the performance of tier one commercial banks in Kenya. The study’s specific objectives were; to establish how mobile banking transaction volume affect financial performance of tier one banking institutions in Kenya; to establish how mobile banking transaction costs affect financial performance of tier one banking institutions in Kenya; to establish how mobile banking products financial performance of tier one banking institutions in Kenya; and to establish how mobile banking accessibility affect financial performance of tier one banking institutions in Kenya. The study was underpinned by various theories which include Schumpeterian theory of innovation, the market power theory, task technology fit theory, and technology acceptance theory respectively. The research used a descriptive research design, in which quantitative data was collected from 8 tier one commercial banks in Kenya, covering the years 2015 to 2019. Data was collected from bank repositories as well as CBK’s publications. Data was analyzed using descriptive statistics and results are displayed using tables and figures. In relation to objective one, it has been found that mobile banking increases transaction volume and this significantly and positively enhances financial performance. The findings related to objective two have confirmed that mobile banking reduces transaction costs for banks to maximize on their profits. The outcomes related to objective three indicate that mobile banking has introduced variety of services and products and this contributes to the overall performance of the banks. As concerns objective four, mobile banking has been found to enhance accessibility and this increases transaction volumes that are impeccable in promoting financial performance. The results of the study revealed that mobile banking is an important and necessary strategy in the modern banking environment for purposes of improved financial performance and increased of competition. This is backed up from the obtained statistics in which case there was a positive correlation between mobile banking and financial performance. Further, the findings support the fact that ensuring easy accessibility of the banks’ services through mobile banking promotes convenience and give customers opportunities to transact frequently than when it is through the counter. Moreover, the research outcomes support the fact that mobile banking accessibility for 24 hours, irrespective of geographic locations, is a very important strategy that banks are depending on to ensure financial performance is promoted. The results also indicate that, increasing the number of products or services that can be accessed through mobile banking means multiple sources of revenues for the banks. This was supported by obtained statistics in which a positive correlation was noted. The study has provided a number of recommendations for policy action and future scholarly work on this area.Item Effects Of Mobile Banking Services On The Performance Of Small And Medium Manufacturing Enterprises In Thika Town, Kenya(KCA University, 2016) Kibui, LucyThe general objective of this study was to investigate the effects of mobile banking services on the performance of SMEs in Kenya. The study applied a descriptive research design. The target population of this study was the 264 small business enterprises operating in the manufacturing sector in Thika Town. This research used stratified random sampling. A sample of 106 respondents was selected from a target population of 264 respondents (including owners or managers). This research used primary data that was collected by use of a self-administered questionnaire distributed through drop and pick later method. Data was analyzed using descriptive statistics, correlation analysis and multiple regression analysis. The study found that mobile banking affects the performance of SMEs in Thika Town to a great extent. SMEs in Thika Town mainly utilize mobile banking service for payment of goods by customers through ‘Lipa na M-Pesa’, for savings to financial institutions, money transfer, phone to bank operations, mini-statements enquiry, credits and airtime purchase and payment of firm bills; cost effectiveness of mobile banking affect the performance of SMEs in Thika Town to a significant extent. Mobile financial services affect efficiency of service delivery hence the performance of small businesses in Thika to a great extent. Mobile financial services enhanced customer satisfaction thereby enhancing the performance of the SMEs. The study recommends that business enterprises keep adopting and using mobile banking in their operations because the number of people with access to a mobile handset is increasing every day. The study recommends that policy makers consider mobile banking in their formulation of policies because of the technological developments and the expected switch from cash transactions to technologically supported mobile banking services.Item Factors Influencing Adoption Of Mobile Banking Services In Informal Settlements Of Mavoko Sub-county In Machakos County, Kenya(KCA University, 2022) Kamunyu, Elizabeth N.The purpose of this study was to establish the determinants of adoption of mobile banking services at the Bottom of the pyramid (BOP) in Mavoko Sub-county within Kenya’s Machakos County. The study aimed to answer research questions and test hypothesis based on perceived cost, perceived ease of use, perceived usefulness and perceived risk as factors that influenced adoption of mobile banking. Demographic factors were also studied as moderating variables. The investigation utilized the Technology Acceptance Model (TAM) and Extended TAM otherwise called (TAM2) by Davis (1989) as the model of study. This study additionally utilized the Unified Theory of Acceptance and Utilization of Technology (UTAUT) by Venkatesh et al.(2003) and Rogers Innovation Adoption Theory by Rogers (1999) in order to understand in depth the adoption of technology innovations such as mobile banking. The study meant to fill the gap that existed in research as it concentrates in Kenya’s versatile and unique Bottom of the Pyramid population (BOP). Basic arbitrary sampling using the simple random sampling method was utilized to obtain 100 respondents over the age of 18 years earning below USD 2.5 every day in the slums or ‘ghettos’ of Mavoko Sub county. The respondents were classified in two distinct groups of youthful adults (18- 35years) and the more seasoned adults (36 years and above). For purposes of this research, respondents were drawn from all the twenty slums in Mavoko Sub-county. These slums are largely characterized by destitution. Residents of these areas have poor access to proper medical services, safe water supply and sanitation. They live in structures made of poor building materials and experience security challenges. These ghettos are often situated in the high risk regions such as near industries, riverbanks and railroad lines. Residents of these slum areas rely on casual employment opportunities for their livelihood and survival. In order to collect data, questionnaires were given to these respondents. A likert scale was utilized in order to qualify responses in the study. The information was then coded, examined utilizing multiple regression and then studied in order to recognize key discoveries, make recommendations and draw conclusions. Statistical Package for Social Sciences (SPSS) version 21 was used for analysis. Findings in this study demonstrated that the utilization of mobile phones at the BOP is gradually growing as retail banks continue offering versatile financial products using mobile channels. The study presets a chance for banks to gain a deeper understanding of the BOP population by learning their consumer behavior thereby allowing them to create products that best suit this demographic. This study also demonstrated that there still a significant number of individuals at the BOP who are not informed about mobile banking technology and its related benefits. The investigation found that perceived ease of use and perceived cost (B=0.242; p value =0.006; B=0.240; p value =0.005) were found to be the most significant components affecting the take-up of mobile banking technology.