Modeling Adoption and Usage of Mobile Money Transfer Services in Kenya Using Structural Equations
American Journal of Theoretical and Applied Statistics
Volume 4, Issue 6, November 2015, Pages: 513-526
Received: Sep. 24, 2015; Accepted: Oct. 21, 2015; Published: Oct. 30, 2015
Views 3989      Downloads 123
Joseph Kuria Waitara, School of Mathematics, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya
Anthony Gichuhi Waititu, School of Mathematics, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya
Anthony Kibera Wanjoya, School of Mathematics, Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya
Article Tools
Follow on us
Mobile Money Transfer services have eased the means of transferring money from one mobile phone user to another in Kenya. Since the introduction of the services there is disparity in adoption of different mobile money transfer platforms in Kenya. In this study Structural Equation Modeling was used to create a model of factors that influence the adoption and usage of Mobile Money Transfer services in Kenya. The findings in this study provide useful information to Mobile Network Operators that they can use in implementation of their Mobile Money Transfer service. The study was conducted in Juja Township. The study established that the independent variable namely, Performance Expectancy, Effort Expectancy and Social Influence had significant influence on Behavioral Intention towards the use of a given Mobile Money Transfer service. This means that the MMT’s users would continue to use a given Mobile Money Transfer service they have chosen. Facilitating Conditions was found to be a significant factor in predicting adoption and use of Mobile Money Transfer for males and females where gender was used as moderating factor. Also Behavioral intention was a significant determinant of Use Behavior of Mobile Money Transfer services. In conclusion the research model was found to be important in determining factors that influence the adoption and use of a given Mobile Money Transfer service.
Mobile Money Transfer Services (MMT’s), Mobile Network Operators (MNO), Structural Equation Model (SEM)
To cite this article
Joseph Kuria Waitara, Anthony Gichuhi Waititu, Anthony Kibera Wanjoya, Modeling Adoption and Usage of Mobile Money Transfer Services in Kenya Using Structural Equations, American Journal of Theoretical and Applied Statistics. Vol. 4, No. 6, 2015, pp. 513-526. doi: 10.11648/j.ajtas.20150406.22
Copyright © 2015 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Awwad, Mohammad Suleiman (2009), ‘Application of structural equation modeling to investigate factors affecting the intention to adopt internet banking in jordan’, Jordan Journal of Business Administration Vol 5(2).
Baker, S.R. (2007), ‘Testing a conceptual model of oral health: a structural equation modeling approach’, International and American Associations for Dental Research Vol 86(8), 708–712.
Barrett, P (2007), ‘Structural equation modeling: Adjudging model fit’, Personality and Individual Differences 42 (5), 815–24.
Bollen, K. A (1989), ‘Structural equations with latent variables’.
Bryne, B. M (2013), Structural Equation Modeling With Amos: Basic Concepts, Applications, and Programming, Second Edition., Routledge Press.
Byrne, B (1998), Structural equation modelling with LISREL, PRECIS, and SIMPLIS., Hillsdale, NJ: Lawrence Erlbaum.
Chin, W. W. and P. A. Todd (1995), "On the Use, Usefulness, and Ease of Use of Structural Equation Modeling in MIS Research: A Note of Caution," MIS Quarterly.
Diamantopoulos, A. and J. A Siguaw (2000), Introducing LISREL, London: Sage Publications.
Gefen, D., W. Straub and M. Boudreau (2000), ‘Structural equation modeling techniques and regression: Guidelines for research practice’, Communications of AIS Volume 4, Article 7 2.
Hooper, D., J. Coughlan and R Mullen, M. (2008), ‘Structural equation modeling: Guidelines for determining model fit.’, The Electronic Journal of Business Research Methods Volume 6(Issue 1), pp. 53 – 60.
Hu, L.T. and P.M Bentler (1999), ‘Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives’, Structural Equation Modeling.
Joreskog, K. G. and D Sorbom (1993), ‘Lisrel 8: Structural equation modeling with the simplis command language’, Chicago: Scientific Software International.
Kabbucho, Kamau, Cerstin Sander and Peter Mukwana (2003), ‘"passing the buck- money transfer systems: The practice and potential for products in Kenya"’, MicroSave Africa Report.
Kaplan, D. (2000), Structural Equation Modeling; Foundations and Extensions., Sage, Newbury Park, CA.
Mason, M. and O. Lineth (2007), ‘Poverty reduction through enhanced rural access to financial services in Kenya. Institute for policy analysis and research (ipar)’, Southern and Eastern Africa Policy Research Network (SEAPREN) Working Paper No. 6.
Maurer, B., J. Kendall and C. Veniard (2011), ‘An emerging platform: From money transfer system to mobile money ecosystem’, Innovations: Technology, Governance, Globalization 6(4), 49–64.
Mbiti, Isaac and David N. Weil (2011), ‘Mobile banking: The impact of M-pesa in Kenya’, NBER WORKING PAPER SERIES.
Rosseel, Yves (2012), ‘lavaan: An r package for structural equation modeling.’ Journal of Statistical Software 48(2), 1–36.
Schumaker, R. E. and R. G. Lomax (2004), ‘A Beginners Guide to Structural Equation Modeling’, Routledge.
Tobbin, P. E (2010), Modeling adoption of mobile money transfer: A consumer behavior analysis, in ‘Paper presented at The 2nd International Conference on Mobile Communication Technology for Development, Kampala, Uganda. General’.
Tobbin, Peter (2011), ‘Adoption of mobile money transfer technology: Structural equation modeling approach’, European Journal of Business and Management 3(7).
Ullman, J. B. (2006), ‘Structural equation modeling: Reviewing the basics and moving forwad.’ Journal of Personality Assessment 85(1).
Ullman, J.B (1996), ‘Structural equation modeling (in: Using multivariate statistics, third edition, b.g. tabachnick and l.s. fidell, eds.)’, HarperCollins College Publishers. New York, NY. pp. 709–819.
Venkatesh, V., M. G. Morris, G. B. Davis and F. D Davis (2003), ‘User acceptance of Information technology: Toward a unified view.’, MIS Quarterly 27(3), 425–478.
Yamane, Taro (1967), Statistics: An Introductory Analysis, 2nd Ed., New York: Harper and Row.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186