Adoption and effectiveness of electronic banking in Kenya

A global explosion in the use of electronic commerce has been witnessed in recent times with the monetary value of products and services exchanged electronically being estimated at above US$ 7 trillion in the year 2004. Research has followed the same pattern especially in investigating factors influencing the adoption and effectiveness of e-commerce in retail businesses. However, little has been done to establish these factors in electronic banking (e-banking) in developing countries. The aim of this research was to investigate the factors influencing the adoption and effectiveness of e-banking in retail banking. Initial and follow-up surveys were carried out in the years 2005 and 2009, respectively, which involved banks controlling approximately 90% of formal retail banking in Kenya. The follow-up survey was meant to monitor trends between the periods of the two surveys. Results varied across the period.