The Relationship Between Mobile Banking and Financial Inclusion of Rural Households of Meru and Turkana Counties

Abstract

This research explores the relationship between mobile banking and the financial inclusion of rural households of Meru and Turkana Counties. The study utilizes primary data sources using surveys and questionnaires to collect quantitative data on mobile banking usage patterns and qualitative data on the perceptions and attitudes of rural households toward financial inclusion and household development. This study used a stratified convenient sampling technique to draw a representative sample of 76 rural residents in Turkana and Meru Counties who use mobile banking services. Descriptive statistics, such as means, percentages, frequencies, and standard deviations, were used to summarize and present data trends. Inferential statistics, including correlation analysis, and regression analysis, were applied to uncover trends, relationships, and patterns of mobile banking including the financial inclusion of rural households in Turkana and Meru counties. Data was analyzed using statistical software SPSS, STATA, and CHI Square tests to ensure precision. Tables and figures were used to present the data. The findings of the analysis revealed that increased enrolment in mobile money services positively impacts financial inclusion. It also revealed that active engagement with mobile financial services such as daily transactions deepen financial participation and access to economic opportunities. The analysis also revealed that improving mobile banking platforms, enhancing connectivity, and introducing innovative financial tools can further increase financial access. Despite the need to have physical access points for mobile agencies in the counties, the study revealed that mere presence does not automatically translate to increased financial inclusion but there is a need for complementary factors like user education, service quality, and network reliability to make these agencies more effective