The Effect of Mobile Money Uptake on Financial Performance of Non-govermental Organizations in Kenya

Abstract

The uptake of mobile phone technology in Kenya has been unprecedented. Of vital significance is the rapid absorption of mobile money technology/services.. In an effort to gauge the effect/ implications of this mobile phone phenomena to the NGO sector financial management efforts, this study brought to the light the available evidence on the effect of the mobile money uptake on financial performance of NGO ’ s in Kenya. Explo ratory research design was adopted to investigate the effect of MMU on the financial performance of NGO ’ s in Kenya and to investigate this relationship, quantitative research approach was employed. To ensure a more complete approach to empirical research, longitudinal data were collected in a sequence so as to track the magnitude of change that would have taken place. The instruments used included the use of structured questionnaires and interviews. Interviews were conducted to give in — depth information wh ich was omitted by the questionnaire. The survey was administered on 30 respondents out of 50 members of the national and international NGO, s in Kenya. Data was subjected to exploratory analysis through descriptive and correlation procedures. The result o f the study indicates very promising positive effect of MMU on financial performance of NGO ’ s that have adopted mobile money in their financial performance and indeed significant positive effect on, improved customer engagement and satisfaction, compliance with donor regulations, efficiency and effectiveness and most importantly reduced fiscal risk status among others. In conclusion the study brings out the needed evidence that indeed MMU is the way to go if NGO ’ s have to improve on their financial performance and for the future good and as vital addition to the current government policies in the area of MMT, donors should formulate key policy to require their funds recipients adopt MMU as the appropriate way of undertakings funds di sbursements.