NJURAITA Pauline Wanjiku, SHAVULIMO Paul, KIAMA Michael


Abstract: This study sought to analyze factors influencing adoption of e-financing in financial institutions in Thika sub-county, Kiambu County, Kenya. The study adopted a descriptive cross-sectional survey. The study was carried out in the financial institutions and thus the study targeted 60 Top-Level Managers, 120 Technical Staff and 1320 Accounts‟ Clerks all totaling to 1320. Using the Central Limit Theorem, a sample of 12 financial institutions, that is, 20% of the targeted 60 financial institutions, were selected. Based on the same theorem, 300 respondents, that is, 20% of 1500, were selected. Questionnaires were used to collect data from Technical Staff and Accounts‟ Clerks whereas interviews were used to collect data from Top-Level Managers. Piloting study was conducted to pretest and validate the questionnaire. Quantitative data collected was analyzed using descriptive statistics specifically, percentages and frequencies. Data was then presented in tables. Hypotheses were tested using ANOVA at 95% confidence interval with the help of SPSS (Version 23). The study established that the levels of adoption of e-financing by financial institutions is below average. It is also evident that there numerous factors which influence adoption of e-financing in financial institutions. These include cost of technology, perceived risks, operational efficiency and competition. The study thus recommends that financial institutions should do proper planning of their financial resources and allocate adequate resources for adoption of e-financing. Financial institutions should devise strategies for risk management and lay ground for effective mitigation measures upon adoption of e-financing technology. Financial institutions should adopt e-financing as a way of improving their productivity and attendant profitability. Financial institutions are pressurized by their competitors to improve on profitability. Thus, the study recommends that financial institutions should adopt e-financing as a way of edging their competitors in the market.
Keywords: Cost of technology, Dynamics, E-Financing, Leadership style, Perceived risks, Operational efficiency

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