Article Sidebar
Published:
Sep 8, 2023Keywords:
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
(i) AJER is an open-access journal. This means that all content is freely available to all. The author retains the copyrights associated with their work within AJER’s policy framework.
(ii) All articles can be accessed freely without any limitations of use, distribution, and reproduction in any medium so long as they are expressly cited.
(iii) The use of general descriptive names, trade names, trademarks, and so forth in this publication, even if not specifically identified, may not mean that these names are not protected by the relevant laws and regulations in their respective countries.
(iv) The publisher believes that all information is true and accurate at the time of going to press. In this regard, the authors, editors, and publishers cannot accept any legal responsibility for any errors, typos or omissions that may be made. There is thus no warranty for the materials contained in the articles.
Main Article Content
Mobile Loans as Financing Options in Kenya and the Financial Performance of SMEs in Low Income Areas in Nairobi County
Margaret Murage
Abstract
This study sets out to examine the effect of loan accessibility on the financial performance of SMEs in urban informal settlements in Kenya. Based on the descriptive survey design, data were collected from 120 SMEs in the 6 wards of Mathare Sub-County using semi-structured questionnaires. It was analysed using descriptive and inferential statistics. The findings show that all the loan accessibility had a significant and positive relationship with the financial performance of SMEs. In this regard, enhancing loan accessibility contributed to the financial performance of SMEs in urban areas. Financial inclusion among SMEs in urban areas was also enhanced through mobile loans. This could go on to enhance living standards among the inhabitants of urban informal settlements as envisaged by world bank. In this regard, several recommendations were made. Mobile loan providers should market their mobile loan products to make them visible since only 4, Safaricom-Fuliza, M-Shwari, Tala, and KCB-Mpesa were the most used. Civil society organizations in collaboration with mobile loan providers should also carry out capacity building campaigns among SMEs in informal settlements. This would lead to enhanced visibility and accessibility of these mobile loans among the inhabitants of urban informal settlements
