International Journal of Finance and Commerce

International Journal of Finance and Commerce


International Journal of Finance and Commerce
International Journal of Finance and Commerce
2022, Vol. 4, Issue 1
Utilization of MPESA and performance of SMES businesses in Nakuru CBD, Kenya

Jane J Kiplagat, Stella Muhanji, Kibet Kirui

SMEs form a dynamic force for sustained economic growth and job creation in developing and developed economies. The study's objective was to determine whether Mpesa utilization has had any impact on the growth and performance of SMEs in terms of sales, savings, profitability, and customer base. The research targeted SMEs in Nakuru town, which utilized Mpesa services in their businesses. The study utilized an experimental research design to compare the performance of the SMEs before and after utilization of Mpesa services. The study sampled 200 SMEs using the convenience sampling technique. The study's findings revealed that the more significant part of the SMEs interviewed (93.8%) indicated that Mpesa utilization had benefitted their businesses because it is efficient and reliable. In addition, the findings indicated that the calculated t -values for the sales (5.9915), profits (6.7487), savings (7.1773), and customer base (8.4951) were more significant than the critical t-value (2.64) at a 1% level of significance. Therefore, the utilization of Mpesa services significantly increased the performance of the SME businesses in terms of sales, profits, savings, and customer base.
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How to cite this article:
Jane J Kiplagat, Stella Muhanji, Kibet Kirui. Utilization of MPESA and performance of SMES businesses in Nakuru CBD, Kenya. International Journal of Finance and Commerce, Volume 4, Issue 1, 2022, Pages 36-40
International Journal of Finance and Commerce International Journal of Finance and Commerce