MANAGEMENT OF DIGITAL PAYMENT AND SERVICE DELIVERY IN NAIROBI CITY COUNTY, KENYA

Abstract

Devolution in Kenya, enshrined in the 2010 Constitution, was a transformative step aimed at promoting equitable distribution of resources and improving service delivery across the country. Nairobi City County, being the largest urban center and the capital of Kenya, plays a critical role in driving the country’s economic growth. It is the leading county in revenue collection, contributing approximately 20% of Kenya’s GDP. According to a 2021 report by the Ethics and Anti-Corruption Commission (EACC), corruption costs the county billions annually, with as much as 30% of the revenue lost to fraud and mismanagement. The management of digital payments plays a pivotal role in enhancing service delivery. However, several challenges hinder the efficiency and effectiveness of service delivery, which directly impacts the overall experience of citizens. The general objective of the study is to examine the influence of management of digital payments on service delivery in Nairobi City County. Specifically, the study sought to establish the influence of technical skills on service delivery in Nairobi City County, and to evaluate the influence of policy and regulations on service delivery in Nairobi City County. This study was anchored on Human Capital Theory, and Institutional Theory. Descriptive research design was used in this study. The target population comprised of 130 staff of the county government drawn from various departments such as ICT, Finance, Procurement, Enforcement, Administration and Inspectorate. The study used Yamane formulae (Yamane 1967) to determine the appropriate sample size for this study. Therefore, the sample size of the study was 98 respondents. Stratified and random sampling was used to select sampled employee of 98 staff from the target population in each strata. This study relied on primary data which was collected through use of structured questionnaire. Pilot test was conducted to test validity and reliability of the questionnaire. Data obtained from the field was coded, cleaned, and entered into the computer for analysis using the SPSS version 25. Data analysis was done through use of descriptive and inferential statistics. Descriptive statistical included frequency, percentages, mean and standard deviation. Inferential statistical analysis to be used was multiple regression and correlation analysis. The significant of each independent variable was tested at a confidence level of 95%. Data was represented in simple easy to understand tables, figures and other statistical representation tools where applicable. The study concludes that technical skills have a positive and significant effect on service delivery in Nairobi City County, Kenya. The study also concludes that policy and regulations have a positive and significant effect on service delivery in Nairobi City County, Kenya. Based on the findings, the study recommends that Nairobi County government should invest in and expand the use of automated digital platforms for service delivery, particularly in areas such as healthcare, waste management, and traffic management. Implementing automated systems can significantly streamline administrative processes, reduce human error, and enhance transparency.

Key Words: Management of Digital Payments, Service Delivery, Technical Skills, Policy and Regulations