| dc.description.abstract | Mobile phone payment system has systematically developed in many developing countries. In the Philippines, Globe Telecom operates G-Cash, which serves 23% of the entire money transfer operations. Mobile banking has also been developed in Sudan and Ghana to significant levels. Similarly in Kenya Safaricom operates M¬pesa. Accordingly, the Kenyan perspective in terms of money transfer services has also seen rapid development; courtesy of the mobile phone services. In Kenya there is a group of low cadre business people who are not able to manage their transactions through the banks because of proximity and bank charges, such business transfer money through phone based services this study therefore seeks to establish the influence of mobile phone money transfer services on the performance of SMEs; specifically on the businesses in Kibuye Market. Descriptive research design has been used in undertaking this study. The target population was to be 3000 SMEs operating businesses in Kibuye of which 10% of 300 SMEs formed the accessible sample for study. This sample was determined by incorporating the convenient, simple random and stratified sampling methods. The study was carried out through the analysis of both primary and secondary data. Primary data was obtained through the administration of questionnaires and oral interviews. Secondary data was obtained from the documents review of commerce and other publications. The result was presented through graphs, pie charts and tables. For purpose of accuracy multiple regression analysis was used to analyse the data. The study results will relevantly contribute to further analysis and in-depth establishment on mobile phone services as a tool in empowering the SMEs and also for Industrial practice; in development, related issues. The study therefore concludes that mobile phone money transfer service have enhanced the performance of SMEs in their business transactions. This is due to improved debt collection, reduced creditors and increased market share. It also reduces time in settling utility bills, which also makes them retain the number of customers who would have been lost if the business had been closed for settlement of the same by other means. Furthermore, the use of mobile phone transfer is cost¬effective, safe and convenient. The mobile phone money transfer service should be harmonized with the banking sector to facilitate ease of banking activities through the mobile phone. The researcher concludes that service providers to the mobile phone money transfer should regulate the commissions charged so as to attract many customers. The government should zero-rate the mobile phone costs to increase accessibility. The research recommends that network coverage should be expanded to cover the whole country, including the remotest of areas in the country. | en_US |