Digital Transformation Strategies and Performance of Government Regulatory Authorities in Kenya: Case of Information Communication and Technology Authority

Abstract

Regulatory authorities in Kenya have been experiencing performance challenges in the recent past. As such, this study sought to evaluate the effect of digital transformation strategies on performance of government regulatory authorities in Kenya. The specific objectives of the study were: to establish the effect of ICT infrastructure on the performance of ICT Authority; to assess the effect of process automation on the performance of ICT Authority; to examine the effect of digital skills development on the performance of ICT Authority, and to establish the moderating effect of institutional factors on the relationship between digital transformation strategies and the performance of ICT Authority. This study was underpinned by the following theories; Resource-Based View (RBV) as the anchor theory, Technology-Organization- Environment (TOE) framework, Systems Theory, and Institutional Theory. The study adopted a positivist research philosophy and a cross-sectional research design and explanatory research design. The target population was 141 employees at the ICT authority in Kenya, where a census was done. Primary data was collected using a structured questionnaire. Pretesting was done on 15 employees of the Capital Markets Authority. Data was analysed descriptively and inferentially. The analysis will be done with the aid of SPSS version 29.0. Data were collected using structured questionnaires, achieving a valid response rate of 84% (N=118). Descriptive analysis indicated that respondents strongly agreed on the importance of ICT infrastructure (overall mean=4.22, SD=1.02), process automation (overall mean=4.26, SD=1.01), digital skills development (overall mean=4.25, SD=1.02), and institutional factors (overall mean=4.27, SD=1.01) in shaping organizational outcomes. Correlation analysis revealed significant positive associations among all study constructs (r=0.589-0.683, p<0.05), underscoring their interdependence. Regression analysis demonstrated that ICT infrastructure (R²=0.378, β=0.615, p<0.05), process automation (R²=0.466, β=0.683, p<0.05), and digital skills development (R²=0.386, β=0.621, p<0.05) had statistically significant effects on performance, thereby rejecting the null hypotheses (H01-H03). Furthermore, institutional factors significantly moderated the relationship between digital transformation strategies and performance (R²=0.512, interaction β=0.201, p=0.024), rejecting H04. The study concludes that ICT infrastructure, automation, and digital competencies are critical drivers of organizational performance in regulatory authorities, while leadership and culture serve as pivotal enablers that strengthen these relationships. The findings provide both theoretical contributions to digital transformation discourse and practical implications for policy and managerial decision-making. It is recommended that regulatory authorities invest in resilient ICT infrastructure, expand process automation, and institutionalize continuous digital skills development within a supportive leadership and cultural framework. Future research could extend this study by examining cross-sectoral government agencies or adopting longitudinal designs to capture dynamic changes in digital transformation.