Assessment of the effects of ICT reforms on the pension business process: A case of pension department ministry of finance in Kenya

Abstract

The Pension Department operates under the Ministry of Finance and has the responsibility of administering public officers' pension scheme. Its mandate is founded under the constitution, and the Pension Act Cap 189-Laws of Kenya and several statutes that deal with pension. According to the pension Act, the eligible persons are civil servants and their dependents. Pension's Management Information System (PMIS) was installed in the Pension Department to enhance processes, procedures and facilitate an efficient information system within the department. It was installed to address the poorly managed and coordinated old computerized information system that led to many complaints on financial accountability and transparency from the public. It was also meant to ensure prudent management of Government finances through the use of comprehensive, timely and reliable pensioners/financial information. The purpose of the study was to evaluate the effects of ICT reforms In the Pension Department in enhancing work efficiency and effectiveness of the business processes in department. In a nutshell, has transparency, management effectiveness and accountability been enhanced by the installation of PMIS? By answering these questions, the study aimed at evaluating the department's business processes for work effectiveness and efficiency in the business processing activities. Both qualitative and quantitative research approaches were used to collect data from the randomly selected persons in every division as well as the project managers. The sample size selected was 108 but the achieved was 98 making 91% success response rate. In conclusion, the PMIS has enhanced transparency, accountability, improved on communication, reduced the procedure for doing work and reduced the errors in payment system. However, staffs are not adequately trained for the task and the staff capacity is also quite low. This has posed a major challenge to the pension staff and management on adequate usage of PMIS