Prof. Simiyu Wandibba; Stevie Nangendo, PhDUniversity of Nairobi, Kenya

Benson A. Mulemi, PhDCatholic University of Eastern Africa, Kenya

Presentation for the IMTFI’s Fourth Annual ConferenceUniversity of California, Irvine, Dec 5-7, 2012

OutlineIntroductionStatement of the ProblemResearch questionsStudy objectivesMethodology: site & populationSampling & Data collectionPreliminary results: MMT/Banking access & coverage; Gender utilization

barriers &patterns; MMT/M-Banking & Gender Empowerment; Access and perceived benefits; Consequences for gender relations.

Conclusion

Introduction•Interest about access to financial 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 objectivesTo 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 collectionPurposive 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 relationsNegative: 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.