Effect Of Electronic Financial Services On Operating Costs In Universities In Kenya (A Survey Of Universities In Mt. Kenya Region, Kenya)

ABSTRACT

This study sought to analyze the effect of electronic financial services on operating costs in universities in Mount Kenya region. The study was guided by four specific objectives; to establish how on-line banking services affects operating costs; to determine whether on-line inter-departmental financial communications affects operating costs; to investigate the effect of electronic financial documentation on operating costs and to determine the effect of e-financial statements on operating costs in universities. To achieve the objectives of the study, a descriptive research design was adopted. The target population was 80 employees drawn from 8 universities, four public universities and four private universities operating in Mount Kenya region. Census was used to collect the data from target population. A self-administered semistructured questionnaire was distributed to the target population. Primary data was analyzed with the aid of Statistical Package for Social Sciences (SPSS) software to generate frequencies, mean and percentages graphs and tables were used to present various aspects of the variables. Content analysis was used to analyze qualitative data while quantitative data was analyzed using descriptive and inferential statistics. A regression model was used to show the relationship between the independent and dependent variables. The findings of the study indicate that online banking, online interdepartmental financial communication, online financial documentation have a significant effect on the operating cost of universities operating in Mount Kenya region and that online financial statements has an insignificant influence on organizational operating costs. This study concludes that electronic financing affects organization costs in the universities operating within Mount Kenya region. The study will therefore sensitize management of universities in general and of other organizations on the importance of electronic financial services because they could reduce operating costs