Influence of Online Money Lending Platforms on Economic Security of Boda-Boda Riders in Ruiru Sub- County, Kiambu County, Kenya

Abstract

Access to financial services in emerging nations has been greatly enhanced by the rapid rise of technology. There can no longer be any doubt about the indisputable role that technology plays in facilitating the expansion of national economic activity through enhanced productivity, efficiency, and access to markets. This study focused on how online lending platforms influenced the economic security of boda-boda riders. This study sought to determine the effects of accessibility of online credit facilities, the effectiveness of the regulatory framework governing online money lending platforms, and the economic security challenges facing Boda-boda riders in Ruiru Sub County. The study considered Financial Growth Theory, Asymmetric Information Theory, and Technology Acceptance Model. A descriptive research design was used in this investigation. The boda-boda riders of Kiambu County's Ruiru Sub County were the intended respondents of this research 2346 in total. A cluster sampling procedure was applied to select the subjects of the study based on geographical location. Ruiru sub-county was stratified based on wards. The sample size was 365 respondents. A questionnaire designed to address the study's objectives was used to gather data. Descriptive analysis was used to examine the data. Results were shown in the form of tables, charts, and figures when the data was coded and analyzed using SPSS version 26. A total of 294 out of 365 questionnaires were analyzed, representing a response rate of

80.5%. The majority of respondents were male (93%), indicating a male-dominated boda- boda sector. A significant portion of the riders fell within the age bracket of 26-35 years,

suggesting that the boda-boda business attracted mainly youthful individuals seeking employment opportunities that did not require extensive skills. The findings indicated that a high percentage of riders had KCPE and KCSE certificates as their highest level of education, highlighting the trend of individuals opting for boda-boda business as a quick way to earn money without needing advanced education. The study found that boda-boda riders extensively utilized online money-lending platforms to access loans or credit which is influenced by key factors like the convenience of applying for loans through online platforms, compared to traditional methods, the flexibility in repayment terms offered by online platforms and the awareness and visibility of online money lending platforms through advertising and promotions. The positive influence is achieved by these services serving as a safety net for households by enabling them to manage financial shocks and smooth consumption patterns more effectively. The study’s recommendations included enhancing financial literacy programs, promoting alternative financing options, and strengthening data privacy regulations to protect the economic security of boda-boda riders mitigating risks associated with online lending platforms