Factors Influening the Growth of Mobile Banking Service in Kenya

Abstract

With continuous innovations, banking in Kenya has found itself unable to resist technological indulgence which has resulted to competitions and banks are forced to explore new channels for monetary services beyond the banks premises. The general objective of the study was to establish factors affecting the growth of mobile banking in Kenya. Specifically, the study was to determine how perceived ease of use; transaction costs and perceived risk have affected the growth of mobile banking in Kenya. The target population was 43 commercial banks in Kenya and the sample size was 30 commercial banks with head offices in Nairobi. Respondents were randomly selected from a sample frame of 5 staffs from data centre division of 30 commercial banks. A questionnaire was used to collect the data from the respondents. Data was analysed using descriptive statistics, correlation analysis and multiple regression analysis. The findings will help the policy makers mainly in financial services sector on how banks need to keep ahead of innovations in order to remain competitive. The study will be important to investors and government agencies like CBK and KNBS in establishing the level of impact and the growth of mobile banking in the economy.