Simon Ndombi Chembukha

Masters of Business Administration (MBA)

1. Dr. Kennedy Ntabo Otiso
2. Dr. Isaac Kiprotich Naibei

ABSTRACT

Since the launch of mobile money services in Kenya in 2007, the number of subscriptions has grown tremendously. This overwhelming uptake has been attributed to the affordability and accessibility of the service. The purpose of this study will be to investigate the effect of adopting Mobile banking on the performance of Small and medium enterprises (SMEs) in Kisumu City, Kenya. The framework of Unified Theory of Acceptance and Use of Technology (UTAUT) will be utilized. The objectives of this study will be to; assess the extent to which ease of use influences use of Mobile banking by SMEs, determine the effect of perceived cost on Mobile banking by Small and medium enterprises, examine the extent to which perceived risk influences the adoption of Mobile banking by SMEs and to ascertain the extent to which perceived usefulness and trust enhances the adoption of Mobile banking by SMEs. The target population of the study will constitute of 6700 SMEs from all the licensed businesses within Kisumu City. A sample size of 203 respondents will be deemed representative. Stratified and simple random sampling techniques will be used in this study. The instrument of data collection will be the Questionnaires which will be used to collect data on the perceived cost, ease of use, perceived risk, perceived usefulness and trust. Validity and reliability of the study instruments will be achieved through use of pre-test, retest and Cronbach Alpha Coefficient. The data will be analysed using both descriptive statistics and inferential statistics. The study will help in understanding the effect of each of the independent variables on the dependent variable and results will be used by both SMEs and financial institutions on the uses accrued from the adoption of Mobile banking.