TECHNOLOGICAL CAPABILITY AND FINANCIAL PERFORMANCE OF UNIT TRUST FUNDS IN KENYA
DOI:
https://doi.org/10.5281/zenodo.22081906Keywords:
Technological capability, financial performance, Unit Trust Funds, Assets under Management, digital innovation, KenyaAbstract
Purpose of the Study: The purpose of this study was to examine the effect of technological capability on the financial performance of licensed Unit Trust Funds in Kenya. Specifically, the study assessed whether the availability of mobile applications, USSD platforms, and client self-service portals was associated with Total Assets under Management among Unit Trust Fund managers in Kenya.
Methodology: The study adopted a positivist philosophy and quantitative cross-sectional research design. Secondary data were collected from ten licensed Unit Trust Fund managers in Kenya for 2025. Technological capability was measured using a Technology Capability Index comprising mobile applications, USSD platforms, and client self-service portals. Financial performance was measured using Total Assets under Management. Descriptive statistics, Pearson correlation, and simple linear regression were used.
Findings: The findings indicated a moderate positive relationship between technological capability and financial performance, with a Pearson correlation coefficient of r = 0.435. However, the relationship was not statistically significant at the 5% level (p = 0.209). Regression analysis showed that technological capability had a positive effect on Total Assets under Management (β = 49.6), while the model explained 18.9% of the variation in financial performance (R² = 0.189). The overall regression model was not statistically significant (F (1, 8) = 1.87, p = 0.209). Therefore, the null hypothesis was not rejected. The results suggest that technological capability may contribute positively to financial performance, although other organizational, market, and strategic factors may have greater influence.
Conclusion: The study concludes that technological capability is positively associated with the financial performance of Unit Trust Funds in Kenya, although the observed effect was not statistically significant. Continued investment in mobile applications, USSD platforms, and self-service portals may improve investor access, service delivery, and competitiveness when integrated with effective governance, portfolio management, and broader organizational strategies.
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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). This permits others to share and adapt the work for non-commercial purposes, provided appropriate credit is given to the original author(s) and source.
