Factors Affecting The Adoption Of E-commerce In Kenya: A Case Study Of Consumer Perspective In Thika Town

Abstract

The rapid spread of internet has created a platform where business transactions are conducted over the internet. Driven by the growth of internet users, e-commerce provides local and global opportunities to businesses. However, its adoption has not been as anticipated in some countries. This study therefore sought to examine the factors affecting the adoption of e-commerce among consumers in Kenya in the case of Thika Town. The objectives of the study included: to identify e-commerce adopter characteristics; to establish the factors that enhance e-commerce adoption as well as establish the factors that hinder its adoption. The study was guided by the Diffusion of Innovation Theory and Technology Acceptance Model. In terms of methodology, this study adopted a descriptive research design where primary and secondary data were gathered. Primary data was collected from the internet users by use of questionnaires. A sample size of 100 respondents was selected through systematic random sampling. The data collected was analyzed by use of Statistical Package for Social Sciences (SPSS) tool. Descriptive statistics specifically frequencies, cross tabulations, and percentages were used to describe the characteristics of the data which was presented in tables and charts. The findings indicate that e-commerce has a relatively slow adoption rate among consumers. Consumers’ demographic characteristics specifically; gender, age and income are found to have a significant influence on consumers’ attitude and perceptions towards the adoption of e-commerce. Trust is established as a critical factor in the adoption of e-commerce due to the high levels of uncertainty and risks involved in virtual transactions. This study recommends that business owners should endeavor to build trust with their customers in order to help consumers overcome the perception of risk and uncertainties. Further recommendation is on the government to legislate consumer protection and cyber-crime laws to assure consumers of their online security.