Determinants of Mobile Fintech Uptake in Kenyan Microfinance Sector

Ndungu JM, Moturi CA. "Determinants of Mobile Fintech Uptake in Kenyan Microfinance Sector." Current Journal of Applied Science and Technology. 2020;39(28):102-114.


The Kenyan microfinance sector faces many challenges such as high operation costs, increased credit risk, low visibility and poor understanding of emerging technology opportunities and risks among others. These problems are persistent due to low levels of innovation and limited uptake of digital financial technologies. This research aimed to identify the determinants that influence uptake of mobile fintech and propose an appropriate model for uptake of mobile fintech within the sector. A descriptive survey of all 30 Microfinance institutions registered with Association of Microfinance Institutions (AMFI) 2018 in Kenya was carried out. Data was collected using questionnaires from 120 respondents. Data was analyzed using descriptive and inferential statistics. Based on correlation model, this study established that technology factors (r=0.862, P<.05), environmental characteristics (r=0.387, P<.05) and organizational factors (r=0.256, P<.05) have a strong influence on the uptake of mobile fintech. Using regression model, technology factors (β=.563, P<.05), organizational factors (β=.281, P<.05) and environmental characteristics (β=.562, P<.05) all have positive and significant influence on uptake of mobile fintech. These factors include technology availability, perceived technology benefits, organization size, resources availability, and competition, regulatory and legal environment among others. Uptake of mobile fintech was found to reduce operation costs and improve business operations efficiency. Understanding of the factors derived in this study will help microfinance institutions, software developers and policy makers as they develop strategies directed at promoting successful implementation of mobile fintech.


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