E-COMMERCE PRACTICES AND PERFORMANCE OF SMES IN THE BODA SECTOR IN NAIROBI CITY COUNTY, KENYA

Caroline Candy Adhiambo, Dr. Purity Gatobu

Abstract


This study investigates the impact of e-commerce practices on the performance of Small and Medium-sized Enterprises (SMEs) operating in the boda boda sector in Nairobi City County, Kenya. The growing adoption of digital tools within informal transport systems presents new opportunities and challenges for operators, many of whom are micro-entrepreneurs navigating urban mobility under dynamic socio-economic conditions. The study focused on four core e-commerce variables—digital payments and logistics technologies—and analyzed their individual and combined influence on SME performance within the sector. A descriptive-correlational research design was employed, utilizing structured questionnaires distributed to 238 boda boda operators across various digital platform categories. A total of 218 valid responses were analyzed, yielding a high response rate of 91.6%. Descriptive statistics, Pearson correlation, and multiple regression analysis were used to interpret the data. The instrument’s reliability was confirmed through a pilot test involving 24 participants, with all variables achieving Cronbach’s Alpha values above 0.70, indicating strong internal consistency. Content and construct validity were established through expert review and alignment with theoretical models. The findings revealed that digital payments were the most influential factor, significantly enhancing transaction speed, financial transparency, and access to credit facilities. Logistics technologies, including GPS and route planning tools, improved operational efficiency, delivery accuracy, and service coordination. Correlation analysis showed strong positive relationships between all four e-commerce practices and SME performance. The regression model explained 86.1% of the variation in SME performance, indicating a robust and statistically significant relationship. The study concludes that e-commerce adoption is a critical driver of growth, efficiency, and competitiveness among boda boda SMEs in Nairobi. It recommends capacity-building initiatives focused on digital literacy and fairer platform practices. The research contributes to the broader discourse on digital inclusion in the informal economy and offers actionable insights for policymakers, digital platform developers, and rider associations working to enhance entrepreneurial outcomes in the urban transport sector.

Key Words: E-Commerce Practices, Performance of Small and Medium-sized Enterprises, Boda Boda Sector, Digital Payments, Logistics Technologies


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