Challenges of E-banking Adoption: a Survey of the Commercial Banks in Kenya

Abstract

The main objective of this study was to investigate and identify the factors influencing or inhibiting e-banking adoption among commercial banks in Kenya. It sought to understand e-banking as a strategy employed by commercial banks in Kenya so as to gain a competitive edge as well as keep up with technological advancements. By understanding the challenges faced the study's findings can aid in formulating strategic responses that will increase e-banking adoption.

The study was conducted by use of questionnaires which were distributed to all commercial banks in Kenya. Descriptive research methodology was adopted for the study. The study population comprised of all the 44 commercial banks in existence at the time of study.

The results showed that banks had adopted e-banking as a strategy but the service had not been fully adopted. The issue of security was found to be the most critical factor influencing e-banking adoption. Other major inhibitors were inadequate regulatory support, lack of in-house it professionals and quality of infrastructure.