NDUNGE KIITI, HOUGHTON COLLEGEJANE MUTINDA, KENYATTA UNIVERSITY

DECEMBER 6-7, 2011

The Use of Mobile Money Services Among 21 Women’s Groups in

Eastern Kenya: Preliminary Research Findings

Map of Kenya

Kenyan Context

Kenya signed onto to the Millennium Development Goals

In 2002-2003, an estimated 56% of population was below poverty line

Projections report 65.9% could be below poverty line in 2015

(Source: Government of Kenya, 2005)

Implications for Rural Context

82% of poor live in rural areas (Government of Kenya, 2005)

Agriculture Production key source of economic growth (e.g. coffee, tea, flowers)

95% of land owned by men; 5% by women (UNDP & UNIFEM, 2005, p.11)

Eastern Province is one of poorest in Kenya Kitui, Machakos, Makueni, and Mwingi districts

have high prevalence of poverty

Vinya wa Aka (VWAG)—’Strength of Women’

VWAG Mission

To strengthen Kenyan women’s groups to mobilize their resources for development and support them to build assets for sustainable and holistic change.

Framework: Individual>Family> Community>Nation

African Proverb: “A human becomes a human because of other humans.”

Training/Workshops

Training of Women’s Groups

21 women’s groups in Eastern KenyaNEPAD Partnership and VisionFramework: Dialogical--Paulo FreireCurriculum Focus:

Integrated Approach to Development Organizational Management Skills Resource Mobilization—investment, savings,

loans Philanthropy & Social Support—Community

Building

Literature Review: Mobile Money Services

M-PESA has 9 million registered users or 40% of Kenya adults (Mas & Radcliffe, 2010)—now over 12m

Clearly builds on urban-rural linkages in Kenya (Mas & Morawczynski, 2009)

Tremendous movement to urban centers for employment

Caters to large population with no access to banking industry

Money’s social role in facilitating a process of engagement or interaction (Maurer, 2006)

Research Process

Study Methodology

Primary Methods In-depth Interviews Focus Group Discussions Participatory Observation

Secondary Methods Literature Review

Synthesis and Initial Dissemination Workshop

Policy Implications Access to Services

Research Assistants

Data Collection: In-depth Interviews

Data Collection: FGD

Observation of MPESA Usage

Emerging Themes for Benefits: Service

Background—Initial Money ServiceSecurity & Safety

Privacy and Confidentiality

Convenience Access at many outlets

Time Management Efficient & fast service “Delays are losses!” (Women’s Group Interview, 2011)

Emerging Themes for Benefits: Usage

Facilitates Group PaymentsPromotes Rural DevelopmentAssists in Business/MicrofinanceCreates EmploymentEncourages Good Record KeepingOther Benefits:

Purchase of Airtime Bonga Points

Access to Service & Employment

Intersect of MPESA and Poverty Reduction

Socio-economic Support for the Individual, Family and Community Health (Hospital Bills) Agricultural Projects Micro-finance/Business Food Security—Famine Emergencies Education (Fees)

Key Challenges/Opportunities for M-PESA

Fraud Facilitates robbery & corruption Immoral behavior

Network Connectivity Problems No Network

Cost Service Charges

Key Challenges/Opportunities for M-PESA

Debt Easy Access to Resources

Limited Services for Special Populations Elderly/People with Disabilities Audible Phone System

Group Communication Dynamics Lack of Accountability Poor Group Meeting Attendance

Selected Quotes from the Field

“Many people feel that they can fail to attend the group meetings and they send the money and it’s fine with them” (Group Leader, Personal Communication, 2011)

“On the negative side, eh sometimes now because of this challenge of being visually impaired, most of the times.. the phones which are available nowadays, they are not audible, they don't talk” (Member of Women’s Group,

Personal Communication, 2011)

Group: Cheerful Sisters

Dissemination Workshop

Implications for Policy

M-PESA Services

Appreciation of M-PESA Service as a Potential Poverty Reduction Tool

Further Research/Investigation

Link between M-PESA Usage and Poverty Reduction

Mobile money services for special populationsLink between policy and grassroots realitiesLink of M-PESA with Philanthropic Initiatives

ECO-PESA

Sociological Understanding of Group Names Kujitoa (Commitment) Wendo; Mendene; Mwende (Love) Pamoja (Unity) Wanawake Wanawaka (Women Shining)