| dc.description.abstract | Computerized Funds Transfer System is an electronic exchange or transfer of money from one
bank account to another either within a single financial institution or across multiple institutions,
through computer based system. A silent revolution has taken place in the world’s entire
payment system aiming to improve cash management position. Cash management is the process
of forecasting, collecting, disbursing, investing, and planning for cash a company needs to
operate smoothly. The Government of Kenya in an attempt to reduce receipts and payments
exposure risks introduced a computerized funds transfer system in 1992 and whose effects have
not yet been known. The purpose of this study was to examine the effect of computerized funds
transfer system on cash management, specifically the study sought to determine the privacy and
security of cash transferred, assess time saved as well as productivity achieved by implementing
computerized funds transfer system, explore the strategies to be put in place to improve
computerized funds transfer system towards cash management and establish relationship
between computerized funds transfer system and government cash management. The study was a
case study and used theoretical framework model on cash management and based on a
descriptive research design it examined and analysed the entire study area and drawn conclusion.
Kisumu East District Treasury was chosen as suitable area of study because its among the few
District treasuries in which CFTs was implemented as a pilot projectand also due to its funds
transaction with the CBK which was the implementing bank regarding government electronic
funds transfer. Primary data was collected by means of self-administered questionnaires and
interviews to the respondents comprising of the staff, heads of departments and accounts officer
from the various departments. Records kept at the district treasury were used to collect secondary
data. The descriptive and analytical statistics was used to examine findings and come up with
conclusions. The findings were presented using tables and cross tabs. The results indicated that
CFTs has led to increased security and privacy, cost reduction, time saving and productivity.
There is also a significant relationship between computerized fund transfer system and cash
management. In conclusion CFTs has led to effective and efficient cash management even
though it is facing a few challenges. The study therefore recommends reinvention of the system
to accommodate and offer adequate privacy of personal data, improved security and training of
staff for sound cash management | en_US |
