Moderating Role of Government Policy on the Relationship Between Digital Transformation Practices and Public Service Delivery Effectiveness: An Empirical Investigation of Huduma Centres in Nairobi Metropolitan Area, Kenya

Abstract

The study examined the moderating effect of government policy on the relationship between digital transformation practices, namely technological infrastructure, digital competencies, and process automation, and public service delivery effectiveness among Huduma Centres in the Nairobi Metropolitan Area, Kenya. The research was based on a pragmatic philosophical paradigm and informed by institutional theory. An explanatory mixed-methods approach was adopted and the population was 13,796 respondents in nine Huduma Centres in Nairobi, Kiambu, Machakos and Kajiado counties. A stratified sampling approach based on Cochran's formula provided a sample of 549 respondents. Primary data were collected using semi-structured questionnaires, reliability and validity were ensured using Cronbach's alpha, factor analysis and expert validation. Quantitative data were analysed with descriptive statistics, Pearson correlation and hierarchical regression according to the three-step moderation model of Baron and Kenny, and qualitative data were analysed with thematic analysis. The study found that digital transformation practices collectively explained 62.1% of the variance in service delivery effectiveness (R² = 0.621, F = 73.282, p = 0.000). Government policy significantly moderated the relationship between digital transformation practices and service delivery effectiveness, increasing explanatory power from 66.9% to 81.6% when interaction terms were introduced, representing a 14.7 percentage point increase (R² = 0.816, F = 82.214, p = 0.000). The strongest interaction effect was observed between process automation and government policy (β = 0.495, p = 0.000). Qualitative findings confirmed that centres with stronger Masterplan alignment reported better resource availability and more consistent service quality, while unequal budget allocations and low enforcement capacity constrained policy's direct influence. The study concludes that government policy is a significant institutional moderator that amplifies the effectiveness of digital transformation practices on public service delivery effectiveness, yet systematic gaps in enforcement, funding, and compliance monitoring require immediate institutional intervention. The study recommends that the Ministry of ICT strengthen Masterplan accountability frameworks, that the ICT Authority establish dedicated policy compliance monitoring mechanisms, and that the National Treasury introduce performance-based funding incentives to ensure consistent and equitable policydriven digital transformation outcomes across all Huduma Centres.