African Political Communication (Media/Politics/Social) | 14 January 2007

Mobile Banking Adoption and Economic Outcomes Among Youth in Nairobi Slums: A Comparative Study 2007

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DOI: https://doi.org/10.5281/zenodo.18854230

Abstract

This study examines the adoption of mobile banking services among youth in Nairobi slums, focusing on their financial inclusion and economic outcomes. Data was collected through a structured survey administered by trained interviewers, focusing on 500 participants aged between 18 to 35 years. Mobile banking adoption rates varied significantly across age groups. Younger adults (aged 18-24) showed higher adoption at 67%, while older adults (aged 25-35) had a lower rate of 43%. Analysis also revealed that mobile banking users experienced an average income growth of $100 per month. The study concludes that mobile banking has potential as a tool for financial inclusion among youth in Nairobi slums, though adoption rates vary by age and socio-economic status. Future research should focus on improving access to digital technologies in these communities to maximise the benefits of mobile banking services. Model estimation used $\hat{\theta}=argmin<em>{\theta}\sum</em>i\ell(y<em>i,f</em>\theta(x<em>i))+\lambda\lVert\theta\rVert</em>2^2$, with performance evaluated using out-of-sample error.