Factors Affecting the Adoption of Mobile Banking by Deposit Taking Saccos in Kenya

, Mobile money providers have partnered with commercial banks in Kenya to offer mobile based financial products that aim to reach. the unbanked. However, as compared to commercial banks in Kenya, the penetration of M-banking in SACCOs has been very slow. The purpose of this study was to assess factors affecting adoption of mobile banking services in Kenya. The study sought to find out the affect capital adequacy and cost of innovation on adoption of Mobile Banking in Saccos in Kenya. A descriptive research design was adopted. The target population was 18 SACCOs operating FOSA (Front Office Savings Activity) in Kenya, Kiambu County. The study used secondary data from the financial statement of this Saccos. The finding of the study revealed that capital adequacy and cost of innovation have a positive and statistically significant effect on the adoption of mobile banking. The study recommends that the management of Saccos in Kenya to invest more on adoption of mobile banking in Saccos trough their annual budgetary allocation, as this would lead to more customers hence profitability. The study further recommends that Saccos should put emphasis on capital adequacy and cost of innovation as they were found to significantly affect adoption of mobile banking.