The ease of doing business in Kenya remains weak, and the rapid development of information and technology is shaking the foundation of banking industry. The cut throat competitive pressure has led to survival challenges of many banks. Business Process Reengineering is therefore management approach to create change through process improvements by reducing production/service cost, improving quality and customer service. The banking operations and functions intended to meet the challenges of bank

more »

... onsolidation, minimizing operating cost, outsourcing, portfolio investment, payments and settlement system call for innovative banking practices through Business Process Re-engineering. The main objective of this study was to analyze the influence of Business Process Reengineering on e-commerce strategy as adopted by commercial banks in Kenya. The general objective was operationalized by in-depth study of the following constructs: business analysis and information management, process excellence, project management. The study employed a descriptive survey research design. Selfadministered questionnaire was distributed to management, supervisors, clerical and secretariat, and support staff randomly selected from the commercial banks that are sample respondent. The target population was 36,923, and the sample size of 384. The scope of the study targets was 43 commercial banks in Kenya. The quantitative data was analyzed by the use of statistical package for social scientists (SPSS). Result from the research findings indicates that business process reengineering influences electronic commerce strategy adoption by commercial banks in Kenya in different directions and magnitude: Business analysis by -0.006, process excellence by 0.173 and project management by 0.108. Process excellence has a positive and significant relationship with Electronic Commerce strategy as adopted by commercial banks in Kenya. However, business analysis has a negative and insignificant impact on electronic commerce strategy as adopted by commercial banks in Kenya. The study recommends that the banks should change their strategic approach to Business Analysis, so that a positive impact on electronic commerce strategy could be achieved. The study further recommends for improved effective project management of our commercial banks. The study also recommends for improvement in all process excellence approaches. Future studies should consider exploring other non-commercial banks so as to support the generalization of the findings. Future studies can also focus on the influence of other organizational capabilities.