Mobile Financial Services Usage Patterns Among Youth in Nairobi: Transaction Frequencies and Profitability Implications

Mobile financial services (MFS) have become increasingly prevalent among youth in Nairobi, Kenya, offering them access to banking-like services through mobile devices. The study employs a mixed methods approach combining quantitative data from surveys with qualitative insights gained from interviews, focusing on transaction frequencies and economic outcomes. A notable finding is that 72% of respondents use MFS primarily for small transactions under $10, indicating their suitability as an entry-level financial service. The mixed methods approach reveals significant insights into how youth utilise MFS for personal finance management and highlights the potential profitability for service providers when targeting this demographic with more frequent transaction options. Service providers are encouraged to design MFS solutions that cater to the specific needs of young Kenyans, particularly in terms of frequency and ease of use for small transactions.