Deterrent of Strategic Change Management in Fintech Companies in Kenya

Abstract

The rapid evolution of financial technology (FINTECH) in Kenya has disrupted traditional financial services, necessitating continuous strategic change to maintain competitiveness. However, Fintech companies in Kenya face significant deterrents to effective strategic change management. The investigated the specific factors that hinder strategic change management within Fintech companies in Kenya, their impact on organizational performance, and how these deterrents can be effectively mitigated to support sustainable growth in the Fintech sector. The study used descriptive design and included all the 38 Fintech companies in Kenya, through census approach, which 3 respondents from the finance, marketing and product development divisions departments totaling to 114 respondents were randomly picked. The respondents were administered with the questionnaire for quantitative data, which was analyzed through descriptive statistics such as frequencies, percentages, mean and standard deviation. The study found that strategic change often requires significant financial, human, and technological resources and that inadequate resource allocation can hinder Fintech organizations from implementing necessary changes effectively, leadership plays a pivotal role in guiding strategic change, yet poor leadership can act as a deterrent, inadequate or unclear communication creates confusion about the purpose, benefits, and processes involved in the change. Also, the prevailing culture within Fintech organizations significantly influences the success of strategic change and that a rigid, risk-averse culture may resist innovation and adaptation, core elements of Fintech's competitive edge. Therefore, Fintech organizations should prioritize strategic resource planning by aligning financial, human, and technological resources with change management objectives. Leadership training programs should be implemented to enhance leaders' ability to inspire and guide their teams through change processes. Additionally, fostering transparent and participatory decision-making can build trust and reduce resistance to change. Organizations should ensure clear, consistent, and timely communication channels that keep all stakeholders informed about the purpose, progress, and expected outcomes of strategic changes. Similarly, Fintech organizations should align their cultural values with their strategic goals by promoting a shared vision of change.