USE OF MOBILE PHONE COMMUNICATION FOR GENERATING HOUSEHOLD INCOME IN THE RURAL AREAS IN KENYA

Abstract

Use of mobile phone has evolved in the recent years and has become a great economic tool for households in rural areas. The mobile communication compensate for inadequate infrastructure by allowing resources and information move free including efficient money transactions. The study was motivated to assess the extent to which mobile phone communication is being used to generate household income. The main units of study were the households in Kiagu locations of Abothuguchi SubCounty in Meru County. One member of every household who owned a mobile phone and used the Mpesa money transfer service was interviewed. A total of 50 households were interviewed including 4 key informants. Data was collected through questionnaire and analyzed with aid of SPSS. The findings indicated that The study concludes that the introduction of mobile phone technology especially with the innovation of m-pesa service has impacted positively on the household income of the rural areas. The study therefore recommends that government should also work together with non-governmental organizations in training rural households on more various ways they can use mobile phone technology for economic generating activities like marketing of their farm products and accessing information which can be useful in their day to day lives