IS ELECTRONIC PAYMENT SYSTEMS A STRATEGIC INNOVATION IN SERVICE DELIVERY? AN ANALYSIS OF HUDUMA CENTRE IN MOMBASA COUNTY, KENYA

Harison Ochieng Yogo
email: yogowin@gmail.com,

Dr. Jane Gakenia Njoroge
email: njoroge.jane@ku.ac.ke

Abstract
Strategic innovation is the intentional use and implementation of service procedures, adoption of new digital platforms to improve efficiency, enhance effectiveness, increase accessibility, promote transparency and responsiveness, and improve service quality. The Huduma Kenya Service Delivery Program (HKSDP) was established to revolutionize service provision in Kenya, setting up integrated one-stop-shop service Centres, supported by digital technologies, that deliver efficient, transparent, accessible, and citizen-centric government services. Nevertheless, service delivery problems are prevalent in high-volume public service centres and require an empirical evaluation of the effectiveness of innovations. One strategic innovation and its effect on service delivery at the Mombasa Huduma Centre, Kenya, has been explored in this study to provide evidence for the digital transformation of the Huduma Kenya Service Delivery Program and the public service in Kenya. In particular, the study highlights one strategic innovation: the Electronic Payment System. Two theories used were: the Theory of Diffusion of Innovations and the Service Quality (SERVQUAL) Theory. The respondents were the 120 employees of Huduma Centre Mombasa who were approached using a census method. Out of the total, 88 questionnaires were completed by 88 employees (73.3%). Results of descriptive statistics: Electronic Payment System strategic innovation was significant and positively correlated with service delivery (r = 0.731, p-value < 0.05). The strategic innovation variables together accounted for 70.9% of the variance in service delivery (R2 = 0.709. The results boost workflow effectiveness, minimize service delays and transaction processing time, increase transparency, accountability, communication, and responsiveness. The outcome recommendations for the public service in Kenya, through the Huduma Kenya Secretariat, various Ministries, Departments, Agencies (MDAs), and County Governments (CGs), should invest in integrated digital technologies, institutionalize innovation, enhance organizational capacity, and establish strategic partnerships that accelerate utilization. The results add to knowledge on strategic innovation and offer valuable evidence for policy, public sector managers, researchers, development partners, and government institutions interested in augmenting innovation-driven public service delivery in Kenya.”

Key Words: Strategic Innovation, Electronic Payment System

Article Type: Open Access

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