Factors Affecting Electronic Payment Adoption by Matatu Owners Saccos in Nairobi City County
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Date
2015-11Author
Gathumbi, Jamal K
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
E-commerce, which is combination of traditional commerce and Internet, has brought
dramatic changes of the way business transactions are conducted not only in Kenya but
across the world. The study sought to establish the factors affecting electronic payment
adoption by Matatu owners Sacco in Nairobi County. The study adopted a cross-sectional
design and was guided by the following research objective; to establish the factors
affecting electronic payment adoption by Matatu owners Sacco in Nairobi County. The
study utilized primary data which was collected using a semi-structured questionnaire.
From a population of 64 SACCOS, a 41% random sample was taken for the study. A 5-
point Likert scale was used to measure the output of each item answered by the
participants. Descriptive statistics were used to describe (and analyze) the variables
numerically. The outcome of the study established that although matatu SACOS have
positively responded to the call to adopt e-payment systems, they have faced immense
challenges in successful adoption of the electronic technology. The study revealed that
factors affecting the adoption of e-payment technology range from capacity of owners,
government policy, lack of adequate a legal and institutional framework and low ICT
knowledge base. The study recommends that relevant agencies foster public-private
collaborations in ICT training, re-training to empower the matatu operators with adequate
ICT tools to enhance the uptake of e-payment techniques not only in Nairobi but across
the country. The study further recommends that both the private and public sector to
collaboratively establish the right legal and institutional structures to create an enabling
environment for technology absorption among the matatu operators in Nairobi and
beyond to ameliorate the impact arising from the absence of an appropriate legal and
institutional framework. Due to the lack of adequate Government support particularly in
terms of Reinforcement from the relevant authority, the study recommends that the
national government through line ministries to formulate sound polices ant strategic plans
biased towards creating impetus to technology dissemination and absorption among the
matatu operators to enhance their core competencies. The study was limited to the extent
that, a study of this magnitude should have included a survey of a sizeable number of
firms. However time and material resources did not make this feasible. On the other
hand, the study period was a little bit narrow for a study of this nature posing a major
hindrance particularly in ensuring that the research work did not hamper the performance
and productivity of the researcher at the work place. The study recommends further
research to focus on identifying optimal e-payment practices and on the possibility of
setting benchmarks in Kenya. The need for further research into this aspect is further
compounded by the facts that electronic payment particularly in the matatu industry is a
relatively new phenomenon in Kenya. Studies involving confirmatory analysis will need
to be carried out to further test and confirm the findings of the study. In the same context,
there is need for further research to focus on the critical success factors in the adoption
and successful implementation of electronic payment techniques not only in the matatu
sector but across the other sectors in Kenya
Publisher
University of Nairobi