Effectivenessof Electronic Funds Transfer on Fee Collection in Private Universities in Nakuru County, Kenya

: There have been increased number of private universities in Kenya as entrepreneurs, religious organizations among other corporates exploit the ever rising demand of tertiary education. This brings about stiff competition amongst the private universities. It is therefore paramount for the institutions to adopt sound revenue generation mechanisms, for this case, electronic payment modes which comprises of internet banking, mobile phone payment as well as electronic funds transfer. The purpose of the paper was to evaluate the effectiveness of electronic funds transfer on fee collection in private universities in Nakuru County. The paper was anchored theoretically on the Technology Adoption Model (TAM). The paper used cross-sectional research design embracing targeting students in private universities in Nakuru County. The sample size was 376 students selected using simple random sampling technique. Data was collected using students‟ questionnaires and Key Informants Interview schedules. Data was analyzed using Statistical Package for Social Sciences (SPSS) version 22. Descriptive statistics was used to present research findings using frequencies, percentages and means displayed in tables and figures. The relationship between the study variables was tested using inferential statistics namely correlation coefficient r (349) = 0.621, p-value = 0.000 < 0.05, coefficient of regression ????1 = 0.490 p-value = 0.000 < 0.05 and Chi-Square test yielded and χ2 (16, N = 182) = 62.028, p = 0.000 < 0.05. This implies that electronic funds transfer is a statistically significant effective mode of fee collection in private universities in Nakuru County.The paper recommends that the universities should invest more on research and innovation so as to continuously improve revenue generation modes. Furthermore, instructions on how to use electronic funds transfer should be well outlined and availed to the users through different modes of dissemination for instance print and electronic media, notice boards among others