In spite of new innovations in technology, many nations have not yet realized optimal utilization of mobile lending. Facts available show that innovations in the banking sector are critical in creating value for banks and their clients. The research on mobile credit has always been pointed towards the access to mobile credit from the point of financial institutions while little attention has been pointed to how mobile credit impacts performance of MSEs in Kenya. The objective of this research study was establishing how mobile lending impacts performance of SMEs in Nairobi County CBD. The research adopted the technology acceptance model and the diffusion of innovation theory. “This study utilized a descriptive survey design. The study population was the 1539 SMEs in Nairobi County CBD while the sample was 10% of the population (155). The target respondents were owners or managers of the SMEs. Data was from 132 of the 155 that was a response rate of 85.2%. The study used primary data obtained from the original sources using questionnaires. The questionnaires were issued using drop and pick later method and emails via Google form. Data obtained using questionnaires was converted from simple responsive into a quantitative form to be useful in the analysis that was done using SPSS. This process generated descriptive statistics which included frequencies and percentages and inferential statistics. A simple linear regression model showed the relation between the dependent and independent variables. Findings reveal that the SMEs in Nairobi CBD have greatly adopted mobile lending. The study findings also reveal that mobile lending influenced firm performance positively. The regression and correlation results support the results as there existed a positive substantial relation between mobile lending and firm performance. The study recommends the need for having SMEs adopt mobile credit as this will boost their sales, reduce cost, increase profits, enhance customer satisfaction and employee retention and ultimately lead to improved firm performance. The study also recommends the need to have more providers of mobile loans as this will provide SMEs with options and eventually lead to reduced costs of the loans.”

show more