Influence of Macro Economic Factors on Strategic Planning in Commercial Banks in Kenya

Abstract

To the best of the researcher’s knowledge, no study had been done on the effects of macro economic factor affecting strategic planning of commercial banks in Kenya. Other studies have been done to establish the effects of the factors independently but not macro economic factors as a whole. Due to various economic factors affecting the economy, Commercial Banks in Kenya need to place themselves strategically to be able to deal with these factors which have become very static. This study aimed at getting detailed information regarding the effects of these macro economic factors on strategic planning. Questionnaires were used to be able to establish the effects of these factors. The respondents of this study were the senior staffs, who include top and middle level managers working at various Commercial Banks in Kenya. The interview guides were self administered to give the respondents time to respond to the questions at their convenience. The completed questionnaires were edited for completeness and consistency. A content analysis was employed. The outcome study found that the banks employ various and different technics to be able to deal with the challenges posed by the effects of these macro economic factors. Most banks due to the sensitivity of the information given to a third party were not willing to give information required. The banks therefore need to have spot on managers to be able to spot and deal with these challenges immediately they arise and are able to advice the top level managers on to the best policies to employ to enable them wave though the challenges faced.