M-PESA is a unique mobile banking application that has achieved enormous success since the very first year of its introduction in Kenya. The uniqueness of M-PESA not only in the context of Kenyan market but also globally, was a motivation for the researcher to investigate the factors that lead to fast growth of M-PESA in Kenya as there was no similar application in existence even in the developed countries.

The objective of the study was to explore the factors that contributed to rapid integration and adoption of M-PESA by Kenyan users. The data was collected through extensive review of literature on economic, technological, regulatory and social factors characterizing Kenya at the time of implementation of M-PESA.

The findings unveiled that rapid adoption of this new technology was enforced with the lack of alternative solutions. Effective targeting and ease of using the mobile application for a wide variety of purposes also contributed to the popularity of M-PESA. The comparative analysis of M-PESA success in Kenya and its failure in Tanzania and South Africa proved that Kenya’s environment was uniquely suitable for the emergence of M-PESA due to favorable regulations, large percentage of the unbanked and increasing mobile coverage.

The recommendations on further expansion of M-PESA in Kenya include simplification of use of M-PESA, customization to address needs and preferences of local users, effective marketing through network of agents.