Studies done on the usage of Information and Commutation Technologies (ICTs) for e-commerce in the informal sector have mostly concentrated on the roles of computers and internet usage, and give contradicting results on the determinants and benefits of using these technologies. Evidence on factors leading to the mobile phones usage for business among Micro and Small Enterprises (MSEs) in Kenya is lacking. This paper investigates determinants of mobile phone usage among informal MSEs in Kenya. Primary data was collected from a survey of 384 MSEs in Nairobi County. Linear probability model, logit and probit models were used to estimate the determinants of mobile phone usage in e-commerce. The results of the study show that education level is the prime determinant of mobile phone usage for e-commerce. Number of employees and gender of MSEs also have a significant effect on the mobile phone usage for e-commerce. The study recommends the training of MSEs in the mobile phones applications for business and the government should create an enabling environment for MSEs to use mobile phone for e-commerce.
Key words: Mobile phone usage, e-commerce, informal sector, MSEs, and Education