Dick Okoth Ochuka

According to Joseph et al., (2003), reliable and accurate banking services; customer services; personalized services; and accurate records are some of the factors which are considered by the customers in their choice of a given type of service delivery channel. The objective of this study was to investigate the effects of information communication technology on customer satisfaction of customers banking with commercial banks in Kenya. The study population comprised of all commercial banks in Kenya. The study employed primary data to analyze the relationships between variables. Primary data was obtained through questionnaires issued to ten commercial banks drawn from the study population. All the 45 banks were stratified into local and foreign owned which were then randomized and the sample interval was determined using systematic sampling.

A total of 212 respondents completed the questionaire. Descriptive statistics was used to describe samples of the study, analyze qualitative data from the questionnaires and draw conclusions about the study population. A multiple regression model was used to analyze the relationships between the variables.Four variables namely ATM’s,Mobile banking,Internet banking and telephone banking were used as the independent variables while customer satisfaction was the dependent variable. The overall regression was a good fit describing 78.8% of the variance in customer satisfaction.Based on this study it was discovered that every time perceived ATM (outlets) usage is increased by 1 unit, customer satisfaction changes by 64.4% when all other variables are held constant. Every time internet banking increases by 1 unit, customer satisfaction increases by 2%. And every time telephone banking increases by 1 unit customer satisfaction increases by 19%. Every time mobile banking is increased by 1 unit, customer satisfaction changes by 28.8%, when all the other variables are held constant, This study concludes that information communication technology adoption by banks and customers usage of the ICT products results in enhanced customer satisfaction. Thus, it is of crucial importance that banks ensure that their ICT channels especially ATM outlets,mobile banking and Internet banking outlets are optimally used as payment and delivery systems to enhance customer sastifaction.The study reccomends for bank management to intensify investment in ICT products to facilitate speed,convenience and availability.This core aspects enhance customer satisfaction,leading to repeat sales and sustainable profitability.