Prof. Simiyu Wandibba; Stevie Nangendo, PhD
University of Nairobi, Kenya
Benson A. Mulemi, PhD
Catholic University of Eastern Africa, Kenya
Presentation for the IMTFI’s Fourth Annual Conference
University of California, Irvine, Dec 5-7, 2012
Outline
 Introduction
 Statement of the Problem
 Research questions
 Study objectives
 Methodology: site & population
 Sampling & Data collection
 Preliminary results:
 MMT/Banking access & coverage; Gender utilization barriers
&patterns; MMT/M-Banking & Gender Empowerment; Access
and perceived benefits; Consequences for gender relations.
 Conclusion
•Interest about access to financial
Introduction
services among the poor in marginal
areas of low-income countries is
increasing.
•Mobile money transfer
(MMT)services have the potential to
increase financial inclusion in Kenya.
•Competing providers: Safaricom Ltd
(M-Pesa), Airtel Kenya Ltd. (Airtel
money), Essar Telekom Kenya
Ltd.(yuCash), Orange Kenya Ltd.
(Orange money), PesaPoint, Tangaza
& Mobikash partner with local Banks.
Statement of the Problem
 New financial service technologies
embody gender differences & are
socio-cultural constructs like gender
empowerment.
 There
are
few
studies
on
interlinkages
between
gender
empowerment & financial inclusion
in the banking institutions and
MMTS in Kenya as in other low
income countries.
Research Questions
 What business strategies do mobile financial platforms in
the study region use?
 How do MMT remittance & payment flows differ along
gender lines in the study area?
 What barriers do each gender face when using mobile money
systems?
 What m-banking/m-payment behaviors do men and women
exhibit?
 How do MMT services affect gender relations in the study
region?
Study objectives
 To analyze the business strategies of the
mobile financial platforms in the study region.
 To track remittance and payment flows along
gender lines in the MMT systems.
 To determine the barriers that each gender
faces when using mobile money services.
 To analyze the differences in MMT service use
behaviors among men &women.
 To determine how MMT services affect gender
relations in the study region.
Methodology: site & population
 The research is being conducted in Machakos County in
eastern Kenya.
 Three administrative divisions covered: Kinanie/Mathatani,
Kangundo & Matungulu.
 Study population: men & woman 18 years of age & above;
representatives of mobile money transfer systems/platforms.
Study site
Study site-2
Sampling & Data collection
 Purposive sampling: mobile phone owners/ MMT service
users.
 Targets 450 (75 male & 75 female) MMT users in 3
administrative divisions.
 Instruments: interview guide/questionnaire
 255 respondents interviewed to date.
6
focus group discussions to be held; 2 in each
administrative division.
 In-depth interviews with 3 key informants in each division
to be conducted.
Preliminary Results: MMT/Banking access & Coverage
 Concentrated in relatively high
population
density
areas:
townships, & shopping centers.
 A majority of the respondents own
mobile phones and have ever used
MMT services; for 2-10 years.
 Country-wide dominance of
Safaricom ltd.(M-Pesa) replicated.
 MMT in micro-entrepreneurship;
small business loans transactions,
domestic maintenance, payment
of school fees & various bills
Gender utilization barriers & patterns
 Network delays, shortage of ‘float’ and
fear of fraud or conmanship.
 Lack of handsets, user registration &
identification document inconvenience.
 Women receive money more than men for
small-scale business, family maintenance.
 Women most recipients of MMT as
support from spouses, sons & relatives
away in towns.
Access & perceived benefits
 Convenient, affordable, accessible,
instant way of accessing financial
resources.
 Convenient alternatives to banks
and other financial transaction
modes.
 Fees charged on MMT transactions
lower relative to bank charges.
 Reduced waiting time relative to
bank and other counter queues.
Figure 1: % Subscription market Share per operator
Source: CCK, Operators’ Returns . 2012
MMT, M-Banking & Gender Empowerment
 MMT part of ‘economy of affection’ & social
capital among spouses; and in courtship
relationships.
 Boost household livelihood by supporting
women’s businesses.
 MMT pay for merchandise obtained on
credit.
 MMT/M-banking contribute to Women’s
basic financial and social empowerment.
 Facilitate women’s access to cash for family
needs.
Consequences for Gender relations
Negative:
 Role conflicts, strain & abdication, especially
among men.
 Suspicion and mistrust about real family
income, misuse, and sources of remittances.
Positive:
 Strengthen kin & non-kin bonds through
ready support for social & cultural events: e.g.
funerals, parties & fundraising.
 Improve family relations as women’s role in
livelihood security efforts and financial
participation increase.
Conclusion
 Competing MMT & M-Banking platforms in
Kenya coincide with growing interest in
financial inclusion of the poor.
 This trend has the potential to enhance
livelihood, but it is necessary to analyze and
evaluate the implications of gender financial
empowerment on the social lives of the
targeted poor people.

The relevance of mobile financial platforms’
business strategies to sustainable financial
inclusion and social development is
essential.