IMPACT OF MOBILE PHONES ON HOUSEHOLD INCOME. A CASE STUDY OF M-PESA IN KIAGU LOCATION, MERU COUNTY

Abstract

Globally. Information and communication Technologies (ICT) have proved to be a key driver of economic progress and development, enhancing productivity and therefore economic growth, reducing poverty and improving living standard in many ways. I lie mobile phone specifically, has emerged as one of the most dynamics forms of 1C Is in the 21a century. The diffusion and adoption of mobile phone technology and its application has not only become a conduit for economic development in various sectors of the world’s economy but also in the personal lives of its users. lhc main objective of this study was to assess the impact of mobile phone technology and specifically M-pesa on household income. The study used primary data from \leru County to investigate the impact of M-pesa to the household income. The general focus in the formulation of economic policies in Kenya has failed to lake into account all the technologies, particularly M-pesa. l hc main locus lias been on the development of other types of technologies with the view to enhancing economic growth while ignoring the various uses of M-pcsa and how it impact on household income Descriptive methods were used to achieve the objectives of the study Results from the descriptive analysis show that the m-pcsa is very significant in the household income There is evidence in the study area that nt-pesa has facilitated economic growth of the residents more particularly through sending and receiving money The findings further show that people can bank money in their m-pcsa accounts. The findings of the study suggest recommendations that are expected to yield increased use of M-pcsa in the country particularly in the rural areas.