PROJECT SCOPE MANAGEMENT AND PERFORMANCE OF INFORMATION TECHNOLOGY PROJECTS AMONG COMMERCIAL BANKS NAIROBI CITY COUNTY, KENYA

Abstract

Commercial banks perform an important function in the economic development of the developing countries such as Kenya. However, Commercial banks in Kenya have been registering declined performance since late 2016 with pre-tax profit decreasing by 9.6%, total income decreasing by 3.1%, total expenses and a consistent decline in Return on equity and return on assets at an average rate of 0.6% and 3.8% respectively. This study therefore sought to establish the influence of project scope management on performance of information technology projects in commercial banks in Kenya. Specifically, the study sought to establish the influence of scope planning on performance of information technology projects in commercial banks in Kenya, to determine the influence of scope control on performance of information technology projects in commercial banks in Kenya. The descriptive research design was employed where data was collected one point in time. The unit of analysis for the study was 41 commercial banks in Kenya (CBK, 2021) while the unit of observation was management employees. The accessible population was 246 individuals comprising of 41 top managers, 82 middle level managers and 123 lower-level managers. Since the target population was small Census was carried out on this study. Quantitative data collected was analyzed using descriptive statistical techniques which are frequencies, mean, standard deviation. Inferential statistics which include Pearson correlation and the Regression Analysis Model were used to test the relationship between study variables. The significance of the model was tested at 5% level of significance. Data was analyzed using Statistical Package for Social Sciences (SPSS) software. The study results were presented through use of tables and figures. The regression analysis revealed significant and positive beta coefficients for all variables scope planning and scope control in predicting the performance of information technology projects within commercial banks in Nairobi County, Kenya. Specifically, effective scope planning demonstrated a substantial impact (B = 0.411, p < 0.05), emphasizing the critical role of comprehensive project planning in enhancing project success. Effective scope control (B = 0.372, p < 0.05) were also found to significantly contribute to better project outcomes. The study thus concludes that project scope management plays a pivotal role in determining the success of IT projects within commercial banks in Nairobi County, Kenya.

Key Words: Project Scope Management, Scope Planning, Scope Control, Performance, Information Technology Projects