The study investigated the relationship between mobile money transfer services and growth of small and medium enterprises in the informal sector of Nairobi County. The study used a cross-sectional survey design and targeted population of 50,000 SMEs in Nairobi County. A sample size of 397 SMEs was by use of stratified sampling technique to identify the respondents from the service, the manufacturing, and the trade sectors. Web-based questionnaire was used to collect data. Descriptive and inferential statistics were used to analyze data. The study found out that there was a strong positive correlation between SME growth and mobile payments, mobile loans, and mobile banking. Regression model revealed that mobile service and loan service have significant effect on the growth of SMEs. The study recommends greater integration of tailor-made mobile money services into the SMEs in the informal sector to bolster performance and improve the absorption and utilization of mobile money transfer services.
