Abstract:
Due to the increasing systemic risk inherent to deferred net settlement systems, Universities are under pressures to
deliver timely financial obligations as it falls due. Adoption of real-time gross settlement (RTGS) systems was
recommended. The purpose of this study was to establish the effect of RTGS on financial performance of Public
Universities in Kenya. A descriptive survey design was used with a sample of 11 staff from three functional areas.
Questionnaires were used as research instruments while data analysis was done through regression and descriptive
statistics. The study findings showed that there was no significant difference between the effects of RTGS on financial
performance of Public Universities. We also established a strong positive relationship (0.690) between shortening of
funds transfer period cost of transfer. Also a negative correlation (-0.633) was observed between shortening of funds
transfer and low maintenance. Hence use of RTGS is more efficient.
Description:
Due to the increasing systemic risk inherent to deferred net settlement systems, Universities are under pressures to
deliver timely financial obligations as it falls due. Adoption of real-time gross settlement (RTGS) systems was
recommended. The purpose of this study was to establish the effect of RTGS on financial performance of Public
Universities in Kenya. A descriptive survey design was used with a sample of 11 staff from three functional areas.
Questionnaires were used as research instruments while data analysis was done through regression and descriptive
statistics. The study findings showed that there was no significant difference between the effects of RTGS on financial
performance of Public Universities. We also established a strong positive relationship (0.690) between shortening of
funds transfer period cost of transfer. Also a negative correlation (-0.633) was observed between shortening of funds
transfer and low maintenance. Hence use of RTGS is more efficient.
