• Jenispher Jepchirchir Korir 
  • Winnie Nyamute 
  • Kennedy Okiro 
  • Peterson Magutu 

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An increasing number of banks in Kenya are launching newer mobile banking platforms which has led to increase in competition in the banking sector, where each commercial bank is penetrating to ensure that they keep in their competitive perspective and attract more likely customers by bringing the services of mobile banking next to their doorsteps. However, it is not clear how characteristics of a firm and management of risks influence the relationship the services of mobile banking and performance of banks in Kenya. The main objective of this research was to find out the relationships among the services of mobile banking, management of risks, characteristics of firms and performance of banks in Kenya. The specific objectives were: to evaluate the effect of mobile banking services on performance of banks, to institute the effect of risk management on the state between mobile banking services and performance of commercial banks, to investigate the effect of firm characteristics on the relationship between mobile banking services and performance of commercial bank and finally, to determine the combined effect of mobile banking services, risk management and firm characteristics on performance of banks. This study used the CAMELs Model evaluation system that examines capital adequacy, asset quality, management capacity, income, and liquidity of banks and therefore establishes the overall unsoundness of banks to measure operation. The study used a positivism research philosophy and descriptive research design. The study consisted of 43 commercial banks and utilized correlation and regression analysis to institute the relationship among mobile banking services and performance of bank. The Baron and Kenny (1986) formulation was used to test the intervening and moderating effect of management of risks and firm characteristics respectively on the relationship between mobile banking services and banks performance. Finally, the multiple regression analysis was used to test the joint result of mobile banking services, risk management, and firm characteristics on the banks performance H01 results indicate that a significant relationship between account-to-account transfer, mobile money, and the performance, H02 indicate that the relationship between mobile banking services, liquidity risk and bank performance is statistically significant whereas the relationship between mobile banking services, market risk and performance is not statistically significant. H03 indicate that the size of a firm have no significant effect on the relation between mobile banking services and performance of banks and H04 indicate that mobile banking services, risk management and firm characteristics have significant effect on the performance of commercial banks. The study is contributing to the theory of information systems since it has shown how increase in the use of mobile banking services which leads to improved performance of banks. The study recommend to regulators to ensure management of risks is adhered to in mobile banking services by commercial banks in Kenya to better operation.

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