Citation:

Dr. Nathan Gitonga. "Assessing the Impact of Mobile Money Adoption (M-Pesa) on the Growth and Sustainability of Small and Medium Enterprises in Nakuru Town, Kenya: A Positive Economics Perspective" International Research Journal of Economics and Management Studies, Vol. 4, No. 2, pp. 205-210, 2025.

Abstract:

Using a positive economics perspective, this paper tends to assess the impact that the adoption of M-Pesa mobile money has had on the growth and sustainability of Small and Medium Enterprises in Nakuru Town, Kenya. Based on survey data, focus group discussions, and secondary literature, the study assesses the impact of integrating M-Pesa into daily operations on SMEs in terms of increased sales revenue, profit margins, customer base, and overall longevity. The paper adopts a mixedmethods, cross-sectional research design that combines quantitative and qualitative approaches. The findings show that M-Pesa adoption significantly enhances SME growth by reducing transaction costs, increasing the efficiency of transactions, and facilitating wider market reach. SMEs that adopt M-Pesa also indicate better cash flow management and increased financial inclusion. However, despite the positive impact, several challenges persist, including high transaction fees, network unreliability at times, discrimination at agent points, and low e-literacy. The paper concludes by recommending policies that will encourage lower transaction costs, better interoperability among the mobile money platforms, and selective training for SME owners in using mobile money to achieve sustainable growth.

References:

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Keywords:

M-Pesa, Mobile Money, Positive Economics, SMEs, Nakuru Town, Financial Inclusion, Sustainability, Growth, Transaction Efficiency.