Masenge, Isaac Ouko2015-10-222015-10-222015http://ir-library.ku.ac.ke/handle/123456789/13789Department of Public Policy and Administration, 53 p. 2015Today’s business world has been deeply influenced by Information and Communication Technologies (ICT) and the application of ICT among business is widespread. The general objective of this study was to assess the effect of ICT use on performance of SMEs in Kamukunji sub-county. This study adopted a descriptive survey research design. The target population under the study was the registered SMEs in Kamukunji sub-county. A sample of 101 SMEs were studied, obtained using 10% of the target population. The study relied on primary data sources and secondary data. Primary data was collected using questionnaires. Descriptive statistics were used to analyze the data. Measures of central tendency (mean, mode and median) were used to find how the data tended to agree while measures of variability/dispersion (standard deviation and variance) were also used to determine the extent to which the data varied from a central position. Qualitative data was analyzed by use of content analysis and inferences made thereof. Data presentation was by use of frequency tables, percentages, pie charts and bar graphs. The study deduced that the forms of IT tools that the businesses had invested in to a good extent are mobile phones services as shown by a mean score of 3.687. The study also established that the use of ICT led to growth and expansion of the business. The study concluded that information and communication technology has led to the growth of the business through volume of sales, access to new markets, volume of service / products and allowing businesses the capacity to handle a greater volume of work. Further, the study concluded that ICT leads to better quality/ service in the business by increasing customer satisfaction, allowing innovation through introduction of new product/service and improving product/service quality. The study recommended that Small and Medium Enterprises (SME) management should consider scanning the environment to find the latest ICT equipment that could be useful in promoting service delivery efficiency and / or proper product mix / choice that suits customer needs. The management should also consider adopting variety of ICT equipment so as to be able to utilize available communication options.enThesis