Factors influencing the implementation of RPA in Kenya’s tier-one banks

Abstract

This quantitative study investigated the implementation of RPA in tier-one commercial banks in Kenya, addressing the critical need for empirical evidence on RPA adoption in Kenya’s banking sector. Grounded in the Technology Acceptance Model, Diffusion of Innovations theory, and Unified Theory of Acceptance and Use of Technologies, the research aimed to examine RPA implementation, perceived benefits, critical success factors, and challenges. Adopting a positivist philosophy, the study utilized a structured questionnaire to collect quantitative data from employees across three tier-one commercial banks in Kenya that had implemented RPA. The population consisted of 6,605 employees, with a sample size of 388 determined using Yamane’s formula. Descriptive and inferential statistical analyses revealed a moderate to high level of RPA adoption among the surveyed banks. The study found that Kenya's tier-one banks have moderately adopted RPA, driven by the need for efficiency. Conversely, a significant negative relationship was observed between implementation challenges and success in adoption. High implementation costs and integration difficulties emerged as primary concerns, while alignment with business objectives, availability of skilled personnel, and senior management involvement were identified as critical success factors. Providing adequate training was deemed the most crucial strategy for successful implementation. Out of 388 respondents, 341 valid responses were returned, representing a response rate of 87.89%. Multiple regression analysis demonstrated that RPA adoption, implementation processes, strategies, and challenges collectively explained 72% of the variance in RPA implementation success (R² = 0.72, p < 0.001). This indicates that these factors significantly influence the success of RPA initiatives in the Kenyan banking context. This study contributes to the literature on RPA implementation in underdeveloped nations and provides insightful information for researchers, bank management, and policymakers. In order to guide strategies for successful RPA initiatives in the African banking sector, the findings support an exhaustive approach to RPA adoption that takes organizational, technological, and human variables into account.