Mpesa affected the existing banking institutions which have lost

Mpesa is a mobile
application that was developed in Kenya and it offers banking services using
the mobile phone. It operates in more than 40000 outlets. Mpesa innovation is
disruptive in Kenyan context, as it has created new markets. This has affected
the existing banking institutions which have
lost clients who had been using the banking services.

Mpesa application was
introduced to Kenya just as a simple method of sending money among the
individual citizens. As time progressed, many individuals (Kikulwe, Fischer,
& Qaim, 2014) diverted from using the banks in sending of funds from one
place to another as the innovation was considered as the best. Money could get
its destination instantly. The technology has been accepted easily because the
technology uses simple technology. Individuals nowadays applause the
innovations from Safaricom that has
enabled quick sending of money as they expected.

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The Mpesa application has features that are easy to
comprehend.  Individuals are given an
opportunity to create their own personal identification digits that protect the
money in a Mpesa account. This has
created confidence and trust in many Kenyan subscribers.
On the same development, other banking services have been affiliated to Mpesa such as mobile banking from phone to the bank and vice versa. Further, Mpesa has created avenues in which individuals use in creating accounts in which they
save money that gains interests.  On the
same development, selling and buying of government bonds have made easier
through the innovations of Mpesa


Mpesa innovation has
driven growth in the in the banking industry. On the same development, Mpesa services have been preferred because they
are fast and cheap. Economic development has been stimulated because of the
innovation (Ndirangu, & Nyamongo, 2014) of Mpesa
by Safaricom Company. It through mpesa
innovations that have made new business such online gambling, for example, sports get milestone to many individuals. It is
believed that as per today there are over
30 million subscribers of Mpesa.

There is high stimulation
of business growth in Kenya nowadays. It is believed that the growth of the
economy has been greatly been influenced by the innovations of Mpesa services. The country’s economy is
growing at almost double digit. It upon this ground that the Mpesa technology has been able to disrupt the
existing business. Many businesses have failed since the introduction of the Mpesa innovations in Kenya.

New markets have been
created because of the innovations of Mpesa services in Kenya. New markets such
as buy goods and Lipa Na Mpesa services (Gajjala, & Tetteh, 2014) from
different companies have been initiated. Companies like Kenya power have opted
the use of Mpesa services when individual customers make a monthly payment of bills.

The innovation
of the Mpesa services has made the market value of
products and services increase. It is upon this ground that individuals have
had to feel the value of the money
(Mwinzi, 2014). Mpesa innovation has displaced many
businesses that existed there before. To
begin with, for example, the banking institutions that had depended on sending of
money in from one place to another. Many businesses
have made great loses because of the
innovations of the Mpesa services.

has not fully developed as such as is
developing the country. The innovation
has stimulated development in many parts of Kenya. Individuals can do business quickly
leading to increased revenues. The level of Kenya in terms of development is
low but individuals in Kenya have
impressed the technology well. Despite Kenya being
a third world country, the
innovation of mpesa has worked much far better just like in the case of
developed countries.

There are a diversity Kenyan cultures. In Kenya, there are many cultures which live
together in harmony. Despite Kenya having a divergent
culture, the Mpesa innovations have been well accepted by the Kenyan citizens.
The diversity culture in Kenya is accommodative
to this technology of Mpesa. It has been argued that the Kenyan culture has
been incorporated into the Mpesa innovation. In simple terms, the Mpesa technology has been incorporated into the Kenyan


Mpesa innovation has
contributed a lot in many sectors. To begin with, it has created employment too
many Kenyans who work in the Mpesa outlets countrywide.
It is purported (Gómez-Barroso, & Marbán-Flores, 2014) that the Mpesa
innovations have employed over 600000
individuals both directly and indirectly. Further Mpesa innovations have helped
in reducing costs that individuals used to incur when sending money from one
place to another.


The introduction of Mpesa
innovation in Kenya has disrupted many businesses in Kenya such the banks and
other related institution that provide money transfer services. The technology
has too created employment for
individuals in Kenya. Further, a lot of
contributions have been made in the Kenyan economy because of the innovations
that have been brought by the Mpesa services. Kenyan culture has embraced the
technology well despite being a third world country. Finally, Mpesa technology has helped the Kenyan government to
monitor money laundering that might be experienced by individuals who have ill