Digital Transformation Strategy and Competitive Advantage among Commercial Banks in Nairobi City County, Kenya
| dc.contributor.author | Musau Nelly Nthenya | |
| dc.date.accessioned | 2026-02-26T11:45:44Z | |
| dc.date.available | 2026-02-26T11:45:44Z | |
| dc.date.issued | 2025-10 | |
| dc.description | A Research Project Submitted To the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Business Administration (Strategic Management) Of Kenyatta University. October 2025 Supervisor Stephen Muathe | |
| dc.description.abstract | In this era of rapidly evolving digital technologies, the banking industry in Kenya must adopt digital transformation to maintain competitiveness and improve the customer experience. However, while there is a growing emphasis on digitisation within the sector, the specific initiatives implemented by commercial banks and their subsequent effects on competitive advantage remain inadequately understood. This research examined how the digital transformation strategy affected the competitive positioning of commercial banks in Nairobi City County, Kenya. The research centred on five main objectives: service automation, data analytics, mobile banking applications, employee upskilling, and digital payment solutions strategies. The study relied on five theories: the Generic Competitive Strategies Framework, the Resource-Based View, the Dynamic Capabilities Theory, the Technology Acceptance Model, and the Diffusion of Innovation Theory. Using a descriptive research design, the study targeted 39 commercial banks grouped according to their sizes, comprising 412 functional heads. The study employed a multi-stage sampling method that combined proportionate stratified and simple random sampling techniques to recruit participants. Applying Yamane’s formula, a sample of 203 participants was selected. Primary data collection was conducted using structured survey instruments. Preliminary testing was conducted on a small sample of 15 respondents before the main study. Experts in the subject matter pre-tested the research instrument to validate its appropriateness. Cronbach’s Alpha Coefficient was used to assess reliability, with a threshold of 0.7 or above deemed satisfactory for internal consistency. The questionnaires were distributed to respondents using digital survey methods. The data analysis process employed descriptive and inferential statistics to summarise the findings. The results were presented in charts, graphs, and tables for easy interpretation and understanding. The study confirmed that service automation, data analytics, mobile banking applications, employee upskilling, and digital payment solutions strategies significantly influenced competitive advantage, although their individual effects varied. The findings suggest that commercial banks should go beyond merely implementing digital technologies and instead focus on strategic integration that enhances customer experience and value creation. Banks should adopt selective automation that retains human interaction for complex services and enhances feedback mechanisms. Further, data governance and investment in advanced, customer-focused analytical tools should be strengthened. Continued innovation in mobile banking is also recommended, including feature enhancements and improved interoperability, supported by strong cybersecurity standards. Employee upskilling should be prioritised through structured training, digital leadership development, and industry-wide certification. Lastly, banks need to re-evaluate their digital payment strategies to focus on user experience, fraud prevention, and differentiated services, with regulators promoting secure and innovation-friendly environments. | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/32586 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Digital Transformation Strategy and Competitive Advantage among Commercial Banks in Nairobi City County, Kenya | |
| dc.type | Thesis |