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| The Role of Mobile Money Transaction Costs on Savings Mobilization of Boda-Boda Youths in Wote Town, Makueni County
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Joshua Muuo Thomas, Edmund Kanyugi Gathuru, Patrick Gudda
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Abstract:
With mobile money adoption, financial services have become available to youths through mobile channels. This has enabled youths to meet many day-to-day financial transaction needs using a mobile phone. Although Kenya has undergone extensive financial reforms in the last two decades, its financial sectors remain under-developed relative to the standards of industrial economies. A recent global database shows that financial exclusion is more pronounced in Kenya especially among the youths. According to FSD-K only one in five youths has a bank account with a financial institution. Further from the study 73% of youths own a mobile phone. The general objective of this study was to determine the role of mobile money transaction costs on savings mobilization of boda-boda youths in Wote town. The study used a descriptive survey design. The study targeted a population size of 16,621 and a sample size of 384 boda-boda youths in Wote town. The study used primary data. Data was collected using a questionnaire. The data was analyzed using descriptive statistics for frequency and percentages, Pearson correlation analysis and chi-square analysis to summarize and classify data, to establish the relationship between the variables and to determine the strength of association between the variables respectively. The study established that mobile money transaction costs are an important influence on savings mobilization of boda-boda youths (r = 0.388, P-value = 0.000). The null hypothesis was tested using Chi-square analysis, where it was rejected based on the Chi-square values. There was perception from the respondents that savings mobilization of boda-boda youths was influenced by mobile money transaction costs. The study therefore concluded that for effective savings mobilization among boda-boda youths mobile money providers should consider offering affordable mobile money transaction. The study recommends that for effective savings mobilization among boda-boda youths, mobile money providers should enhance savings mobilization by offering mobile money services at more affordable costs.
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