Mobile Banking Adoption, Technological Efficiency and Financial Performance of Small and Medium Enterprises in Kajiado County, Kenya

  • Juma V. Okello Department of Finance and Accounting, Umma University, Kenya
  • Agnes Munene Department of Finance and Accounting, Umma University, Kenya
  • Alex Koech Department of Finance and Accounting, Umma University, Kenya
Keywords: Mobile banking adoption, Technological efficiency, Financial performance


Despite the widespread availability and adoption of mobile banking technology, research on its specific impact on the financial performance of Small and Medium Enterprises (SMEs) is lacking. The effective utilization of mobile banking by SMEs to enhance financial performance and the factors influencing its effectiveness remain unclear. This study aimed at examining the relationship between mobile banking adoption and the financial performance and the moderational effect of Technological efficiency of SMEs in Kajiado county, Kenya. A descriptive research design was adopted targeted a population of fifty-eight (58) licensed SMEs in Kajiado County, Kenya. The study was guided by Technological Acceptance Model which is widely adopted theory for examining the behavioral intention of using computers by the users. Data was collected using self-administered, structured questionnaires and items were grounded on a five-point Likert scale with data analysis being done using descriptive and inferential statistics. The hypotheses of the study were tested using multiple regression models and Hayes process macro. The results showed that Mobile banking adoption significantly predicts SME’s financial performance (β=0.140, p < 0.05) and this relationship is partially mediated by Technological efficiency (β =.239, p < .001, CI=0.029, 0.112). Theoretically, the study supported the incorporation of the key Mobile banking adoption, and Technological Efficiency, where the outcome of the results indicated the significant relationship in achieving financial performance of SMEs. Finally there is need to undertake similar studies covering other geographical locations to make generalization of this study.


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How to Cite
Okello, J., Munene, A., & Koech, A. (2023, May 12). Mobile Banking Adoption, Technological Efficiency and Financial Performance of Small and Medium Enterprises in Kajiado County, Kenya. African Journal of Education,Science and Technology, 7(3), Pg 637-644.