Mukami, Nelly WanguiNzuk, David2021-02-162021-02-162021Wangui, M., & Nzuki, D. (2021). THE EFFECT OF ELECTRONIC MONEY TRANSFER SYSTEMS ON THE FINANCIAL PERFORMANCE OF FINANCIAL INSTITUTIONS IN KENYA (CASE STUDY OF SUMAC DEPOSIT TAKING MICROFINANCE LTD). International Research Journal of Business and Strategic Management, 2(1).https://www.irjp.org/index.php/irjbsm/article/viewFile/16/26http://ir-library.ku.ac.ke/handle/123456789/21456A research article published in International Research Journal of Business and Strategic ManagementThis research paper sought to identify the various EMT systems in Kenya, their effects on the profitability, liquidity and the business net worth of financial institutions in Kenya. For the purposes of this study, Sumac DTM being a financial institution was studied. Data was collected primarily by use of both questionnaires and secondary data. The questionnaires consisted of both open and closed questions and were sent to the various respondents who were key employees in the institution under study. Data was analyzed and presented using tables, pie charts and graphs. The study also revealed various benefits of using the EMT services which include speed, profitability and convenience. The main challenge was found to be security issues such as money laundering and identity theft especially due to more sophisticated technology. From these findings, it was recommended that EMT systems need more regulation and monitoring in order to protect the users from losing their hard earned money and also the government from losing revenue through money laundering which could have greater repercussions on the economy such as increasing inflation. A tighter regulatory framework would also help in overseeing an efficient, transparent and effective EMT system hence a stable financial environment. It was also recommended that since the individual EMT services are very broad and tailored to meet the individual need of the institution, there is need for an in depth study on each EMT service due to time constraint.enElectronic Money Transfer SystemsFinancial PerformanceArticle