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Digital Financial Inclusion: M-PESA in Kenya

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Digital Business in Africa

Part of the book series: Palgrave Studies of Marketing in Emerging Economies ((PSMEE))

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Abstract

Financial inclusion refers to the proportion of a country’s population with access to affordable, convenient, and appropriate formal financial services. The ideal situation is to have all the citizens open and operate bank accounts. However, this is practically impossible, especially in developing countries where the banking infrastructure is poor, and income levels of a large proportion of the population may be too low to attract the attention of commercial banks. Digital financial inclusion can be used to reach the financially underserved or excluded segments of the population with affordable and sustainable formal financial services that suit their specific needs. Mobile money services offered by telecom firms like Safaricom Plc in Kenya have been instrumental not only in achieving digital financial inclusion but also in stimulating economic growth. This chapter examines M-PESA (M for mobile, Pesa for cash in Swahili language) with emphasis on its origin, adoption, operation, services, contribution, and challenges. The chapter provides suitable recommendations for Africa based on the lessons learnt from the M-PESA experience.

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Author information

Authors and Affiliations

  1. Catholic University of Eastern Africa, Nairobi, Kenya

    Benjamin Mwanzia Mulili

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  1. Benjamin Mwanzia Mulili
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Correspondence to Benjamin Mwanzia Mulili .

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Editors and Affiliations

  1. Lagos Business School, Pan-Atlantic University, Lagos, Nigeria

    Ogechi Adeola

  2. Kedge Business School, Marseille, France

    Jude N. Edeh

  3. University of Kigali, Kigali, Rwanda

    Robert E. Hinson

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Mulili, B.M. (2022). Digital Financial Inclusion: M-PESA in Kenya. In: Adeola, O., Edeh, J.N., Hinson, R.E. (eds) Digital Business in Africa. Palgrave Studies of Marketing in Emerging Economies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-93499-6_8

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