Effect of Technological Readiness in Detection and Prevention of Fraud among Registered Commercial Banks in Kenya

Purpose: This paper empirically investigates the effect of technology readiness, specifically technological optimism, technological innovativeness, technological discomfort, and technological insecurity on fraud detection and prevention (FDP) among registered commercial banks in Kenya. Design/Methodology/Approach: The study adopted both the explanatory and cross‑sectional research design. Data was collected using a sample of 400 structured questionnaires that were administered to staff across various departments of the selected banks. The hypotheses were tested using the results of multiple regression analysis. Research Findings: The regression results demonstrated that technological innovativeness and technological optimism positive and statistically significant effect on FDP. In contrast, technological discomfort and technological insecurity had a significant and negative effect on FDP. These results confirmed that readiness enablers (optimism, innovativeness) improve fraud‑management outcomes, whereas readiness inhibitors (discomfort, insecurity) erode its. Practical Implications: The study contributes to the fraud‑risk and digital‑operations literature in emerging banking markets and offers actionable guidance for bank executives, risk managers, and regulators. Managers should institutionalize innovative practices and cultivate optimism through clear performance narratives, feedback loops, and transparent model‑risk governance. Concurrently, banks should mitigate discomfort and insecurity via user‑centric design, role‑specific training and certifications, embedded decision support, and peer‑champion programs. Supervisory bodies and industry associations may leverage these insights to craft capability‑building initiatives and incentives that align human readiness with technology investments, thereby strengthening sector‑wide fraud detection and prevention.