IT governance practices in commercial Banks in Kenya
The survey had two major objectives. First was to establish the current status of IT Governance practices in Kenyan commercial banks. Further it set out to investigate the challenges that Kenyan Commercial banks face while implementing IT Governance. This was in attempt to investigate the IT-Governance practices in commercial banks in Kenya. In undertaking the study, commercial banks in Kenya were targeted. Primary data was collected from 78 respondents drawn from the commercial banks using a semi-structured questionnaire. The questionnaires were administered electronically while others were administered using “drop and pick later” method. The respondents were senior managers involved in business and IT strategy formulation and implementation. The commercial banks were identified using sources from Central Bank of Kenya (CBK). The analysis was done through means, standard deviations and factor analysis and was presented through tables, frequencies and percentages. From the data analysis, it was established that the majority of the banks were locally owned as opposed to being foreign with over sixty percent and have several branches. Many have been in operation for over eleven years. There was evidence that a lot of respondents were from the chief information officer designation. The strategy committee meets quarterly to look at how they can implement and plan good strategy processes for IT governance. The research also noted that the review of budgets and plans isn‟t done regularly to conform to the IT governance implementation hence non-adherence to IT standards governance framework. Arising from the study findings, it is recommended that IT- Governance matters need to be given more prominence among the banks. The role of CBK in the process needs to be reviewed to improve on IT governance practices in commercial banks in Kenya. Commercial Banks should act as models to the other business fraternity in implementation and adherence to standard IT processes that conform with the IT governance in business practices. It‟s evident that there is need to look. Given the level of limitations encountered, it was concluded that effective IT governance process is a function of many facets as evidenced by the study. The Central Bank as the main controller of both the commercial banks, its machinery has to have the best systems to ensure that there is IT governance becomes a central driver to ensure achievement of IT business strategy alignment, risk management and value delivery from the huge ICT investments. Every officer with a responsibility on the IT governance process must be well endowed with requisite skills and theory to ensure compliance and prudent utilization of the strategies in place. IT governance policy implementation, budget implementation, planning and the resource allocation function have all been confirmed as key deliverables in the IT governance process.