Fintech adoption, digital maturity and operational efficiency Among 3-star hotels in Nairobi Metropolitan area, Kenya

Abstract

The study examined the effect of financial technology (FinTech) adoption on the operational efficiency of three-star hotels within the Nairobi Metropolitan Area, Kenya. FinTech innovations have become critical tools for enhancing service delivery, cost control, and financial management in the hospitality industry. Despite this, many mid-sized hotels continue to experience inefficiencies arising from delayed payments, manual invoicing, and limited digital integration. Guided by the Technology Acceptance Model (TAM), the Technology–Organization– Environment (TOE) framework, the Resource-Based View (RBV) theory, and the Financial Intermediation Theory, the study sought to assess how mobile money payment, card payment, and electronic invoicing influence operational efficiency, and to analyze the moderating effect of digital maturity on these relationships. The study adopted a descriptive research design and targeted all 62 registered three-star hotels in the Nairobi Metropolitan Area, where the unit of analysis was the hotel and the unit of observation was the operations manager. A census approach was employed, and data was collected using structured questionnaires administered through both physical and electronic channels. The data were analyzed using descriptive statistics, correlation, and hierarchical multiple regression analysis. Diagnostic tests were conducted to ensure normality, linearity, homoscedasticity, and the absence of multicollinearity. Results revealed that all FinTech dimensions were positively correlated with operational efficiency. Regression analysis indicated that card payment and electronic invoicing had significant positive effects on operational efficiency, while mobile money payment showed a positive but weaker relationship. After introducing digital maturity as a moderator, the strength of all relationships increased, and the model’s explanatory power improved (R² rising from 0.217 to 0.650). The moderation results confirmed that hotels with higher digital maturity derived greater efficiency gains from FinTech use. The study concludes that FinTech adoption significantly enhances operational efficiency among three-star hotels and that digital maturity amplifies this relationship by improving technological readiness, staff competence, and innovation capability. It recommends that hotel management invest in digital capacity building, continuous system upgrades, and strategic partnerships with FinTech providers to optimize service delivery and operational performance. Policymakers should also support digital transformation initiatives in the hospitality sector through incentives, training programs, and regulatory frameworks that promote innovation and competitiveness.