ABSTRACT

Access to financial services in a country is essential for economic growth. The term access to financial services refers to the ease with which an individual can use financial services if theywant to. It is thus distinct from usage; an individual may have access to financial services but choose not to use them. It is also possible for an individual to face access constraints even if they are using a financial service. For example, an individual may have a bank account, but may face constraints to using it actively because the nearest bank branch ATM or MPESA agent is so far from his /her point of residence. The main objective of the study was to find out whether such an increase in access to financial services, particularly M-Pesa financial services have been able to yield economic impacts in the country since its launch in 2007.Thespecific objectives entailed establishing the impact of MPESA on key economic parameters/indicators like investments, savings, incomes, and savings. The researcher used a sample of M-pesa users drawn from the Nairobi CBD. A sample size of 200 was used where the respondents were selected at random since the population and factor under study was homogenous or with minimal dis-similarities if any. The study used questionnaire to collect primary data. The questionnaire used consisted of both open ended and closed ended questions. The study found out that there was economic impact from the access of M-PESA financial services in the country (Kenya) .Such economic impact was evidenced through various economic growth indicators like living standards, savings, incomes and investments

CONTENT

ABSTRACT

Introduction

Questionnaire distribution

Questionnaire response rate

Methods used to send money.

Factors contributing to the success of M-pesa in Kenya

Simplicity in its operation

Safaricom’s huge market share

“Bank to the unbanked’’

Accessibility of the M-pesa agents.

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Impacts of M-pesa on Living Standards

contribution of M-pesa to the economy

Creation of jobs

Ease of doing business

Financial Inclusion

Capital accumulation/Savings

Impact of Mpesa on Incomes

Introduction

Conclusion

Impact of Mpesa on living standards

Impact of M-pesa on investments

Impact of M-pesa on savings

Impact of Mpesa on incomes Recommendation

Recommendation for further research

Limitations of the study