Survey of the causes of information systems failure among microfinance institutions in Kenya
Abstract
This study sought to identify the state of information systems among the micro finance
institutions (MFls) in Kenya and what causes their failure after they have been
implemented. This study emanated from realization that though information lies at the
very heart of microfinance; information systems have remained as one of the key
constraints facing MFls in Kenya and other parts of the world. The nature of the
operations of MFls necessitates collection and management of high volumes of data and
information. This presents a big challenge to the sector.
The research was carried out on 37 MFls operating in Kenya. Relevant data was collected
through use of questionnaires. A drop and pick method of questionnaire administration
was used. A total of 30 responses were received representing 81% response rate.
The findings revealed that majority of the MFls were operating manual systems (53%)
and further 64% of those using computerized information systems are not satisfied with
their systems. Various causes of this scenario were expressed and included among others
financial constraints to acquire and maintain good systems, inadequate managerial
support and leadership to systems implementation, unavailability of appropriate software,
unreliable telecommunication, poor training to users, poor documentation, defective
system development process and ever changing operational policies and procedures.
The study revealed that information systems used in the sector were inadequate. Factors
contributing to this inadequacy and failure include poor systems development and
implementation process used, lack of management support, inadequate financial and
personnel resources, poor supportive telephone and infrastructures and inadequate
support from vendors.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences