Mobile Money, Cashless Society and Financial Inclusion: Case Study on Somalia and Kenya

13 Pages Posted: 1 Apr 2019

See all articles by Sayid Gas

Sayid Gas

Marmara University - Department of Economics

Date Written: July 15, 2017


Almost two billion, 40% of world adult population, lack a basic service without which life is difficult in our modern world, and that is financial account (Anders Borg, 2016). Exclusion from formal financial system has been recognized as one of the barriers to reach of “a world without poverty” (WorldBank, 2012). At the same time, mobile subscribers outnumbered financial account holders in many countries and almost half of un-banked people have mobile phones. This opens a window of opportunity for financial inclusion stakeholders including governments, financial institutions and practitioners. In the last decade, mobile money has accelerated financial inclusion for many people in the developing world as evidenced by progress made in Somalia, Kenya and other countries in Africa, Asia, and Latin America. For this reason, it is seen as both “potential” financial inclusive and financial integration tool (Africa Development Bank, 2012). This paper investigates effect of mobile money on financial inclusion. By using Kenya and Somalia as a case study the research found that Mobile Money Services are an effective tool that can be used to tackle financial exclusion in developing countries.

Keywords: Financial Inclusion, Mobile Money, Cashless Society, Somalia, Kenya

JEL Classification: G00

Suggested Citation

Gas, Sayid Aden, Mobile Money, Cashless Society and Financial Inclusion: Case Study on Somalia and Kenya (July 15, 2017). Available at SSRN: or

Sayid Aden Gas (Contact Author)

Marmara University - Department of Economics ( email )


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