Abstract
Financial technology (FinTech) has emerged as a cornerstone of socio-economic transformation in developing economies, bridging the historical divide between marginalized populations and formal financial services. In Kenya, despite the widespread penetration of mobile money platforms such as M-Pesa, rural communities continue to face distinct socio-technical, infrastructural, and economic barriers that impede the deeper adoption of advanced digital financial services, including micro-savings, digital credit, and agricultural insurance. This study employs a convergent mixed-methods research design to investigate the determinants, patterns, and socio-economic outcomes of mobile banking adoption among rural households across three Kenyan counties: Machakos, Kilifi, and Kakamega. Quantitative survey data collected from 420 smallholder agriculturalists and rural entrepreneurs were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), while qualitative insights were derived from 24 semi-structured interviews with community elders, female micro-entrepreneurs, and mobile money agents. The findings reveal that perceived trust, agent liquidity reliability, and social influence are the strongest predictors of sustained mobile banking usage, whereas network volatility, transaction costs, and fear of digital fraud serve as substantial inhibitors. While mobile banking significantly enhances household resilience against unexpected economic shocks, the transition from basic peer-to-peer transfers to wealth-generating FinTech instruments remains constrained by digital literacy deficits. The paper provides actionable frameworks for FinTech developers, telecommunication operators, and policymakers to design inclusive, human-centered financial technologies tailored for low-resource rural settings.
