Analysis on Challenges Small Business Face in using the MBanking/Payment Services in Kericho Town, Kenya

Mobile banking services are at the present increasingly used to accomplish economic transactions by the business people who would have followed long processes to complete their transaction deals. Despite the importance of mobile banking, several studies indicate that the industry still faces challenges including lack of awareness among the business parties and customers. Though large populations of Kenyans have embraced the new technology in most of their transactions, the contribution of the new technology on small scale enterprises has received very little attention from the scholars. The main purpose of this study was to identifying and rank the challenges faced by the residents as they try to embrace the mobile banking services. The study adopted a survey design where data was collected from selected respondents. The population of the study comprises of 730 small business enterprises. Simple random sampling technique was used to select 88 small business enterprises based on 95% confidence level and accepting 5% margin of error as recommended for most business and social researches. Primary data was collected from the respondents. Data was analyzed by using statistical package for social sciences (SPSS) and it was presented in the form of graphs, tables and charts. Analysis of the data revealed that the highest challenge faced by the business owners was the cost of transaction with a cumulative percentage of 51.3 as compared with other challenges.