The effect of mobile money transfer on the poverty levels among the elderly persons in Kiambu County

Abstract

Elderly persons are a group of people exposed to poverty due to lack of financial empowerment as they are not in a position to earn an income. Access to formal financial services in Kenya is still low. In particular, the very poor people who are characterized by low literacy levels and generally low, irregular and sporadic income, in most cases do not have the appropriate financial tools that fit their lifestyle and can help alleviate their poverty. This research paper’s main objective was to find out in detail what Mobile Money Transfer entails and its relationship to Poverty Levels among the Elderly Persons in Kiambu County. This area of study is not widely researched as yet. This study used the quantitative measure of descriptive statistics with a purposive sample of elderly persons in the Cash Transfer Program being spearheaded by the Government. Data was analysed using the statistical package for social sciences (SPSS) and entailed both a correlation and regression analysis of the variables. This study was able to show that elderly persons of Kiambu County positively embrace the usage of mobile phones. It also showed that through the usage of mobile phones they are able to feel more economically empowered by storing a little money in the Mpesa until the need for it arises. It was also clear from the study that poverty reduction is attributable to many factors and mobile money transfer is one among the many other factors. The main policy recommendation of this study is the need to begin income generating activities for the elderly alongside the monthly stipend given to them through the cash transfer initiatives. In addition there is need for a review of the modes of transferring funds to the elderly persons to incorporate the mobile money transfer platform which the elderly persons have positively embraced.