Motivators of Mobile Phone Debt Financing among College Students in Kenya

Abstract

Mobile phone debt financing is above 90% among all phone users in Kenya, irrespective of the reason for borrowing, and at least three-quarters of the youth who own mobile phones in Kenya have accessed and utilized formally acquired debt financing, including mobile phone loans. In addition, mobile phone debt financing is essential for empowering the youths by enabling them to engage in small entrepreneurship ventures and even support their education programs. Hence, the study attempted to determine the motivators of this kind of debt financing among college students in Kenya. Using a purposive sampling technique, 377 students from four major colleges and universities in Kisumu City, Kenya, with a total population of 18,700 students, were applied to obtain data. Descriptive and inferential statistics were used, and the findings revealed that government regulations and credit terms are the most significant motivators of mobile phone debt financing among college students in Kenya. Sensitization and social influence were also found to moderately influence mobile debt financing.