The Effects Of Regulatory Framework On Combating Fraud Of Mobile Money In Kenya

Abstract

Managing risk in mobile money is a challenging task, especially when it comes to the risk of fraud among mobile money companies. While the structure of managing fraud may differ, there is a common framework that is widely agreed to be the foundation to any fraud strategy in mobile money. Therefore, this study sought to examine the effects of regulatory framework on combating fraud of mobile money in Kenya with special focus on mobile money companies in Nairobi. The findings from this study are expected to help policy maker develop frameworks that will combat fraud in the mobile money sector. The study utilized public interest economic regulatory theory and private interest theory in examining the selected study area. Descriptive research design was adopted and this combines both quantitative and qualitative research while questionnaire was the key study instrument. The study further used the Pearson product-moment correlation as the analytical model. With 16 respondents forming the study participants, results indicate the oldest mobile Money Company was started 5 years ago. Results shows that noncompliance remains a challenge as respondents indicated there were no penalties for any non-complying individuals.