Small-scale Kenyan farmers use mobile money to turn remittances into farm profits

Resource published October 13, 2014

Kenyan Farmers Report

A study has found that Kenyan farmers who use mobile money have 35% higher profits per acre of banana production than non-users. Mobile money also increased household income by 40% and contributed to more commercially oriented farming. One important impact pathway is through remittances received, which are much higher for users of mobile money. In comparison to traditional formal and informal mechanisms of transferring money between relatives and friends, mobile money services reduced the transaction costs substantially and provided new incentives for saving. And, mobile money remittances also reduced risk and liquidity constraints, helped farmers to purchase farm inputs, and market a larger proportion of their output.

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