Foreign entry strategies by Fina Bank in Kenya to enter into East Africa region

Abstract

There are various forms of entering into foreign markets. Companies can either establish stand-alone businesses or acquire existing ones in the other countries. The objective of the current study was to determine the entry strategies used by Fina Bank to enter into East Africa Region. From literature review, the banking sector in Kenya is very competitive leading many of the banks to look for customers beyond the borders of the country. There has been a rapid growth in the banking sector in Kenya; the industry continues to dominate the East African economies as the dominant driver in economic growth and wealth creation. There are currently over forty registered Banks in Kenya and these are still growing. Fina bank has extended its operations to Rwanda and Uganda. The bank has now shifted from being a small respected financial institution to a preferred regional Small and Medium Enterprise (SME) and Business bank with a strong developmental emphasis especially in the rural areas. It aims to serve the entire region in the SME and Business sectors. The study adopted a case study research design. The study sought to determine the strategies that are used by Fina Bank in Kenya to enter into East Africa Region. Data was collected from a broad number of the bank’s senior management about the foreign markets that the bank is operating in different countries of East Africa. The researcher relied on both primary and secondary data. Secondary data was obtained from various documents including the annual reports, strategic plan and end term evaluations to vi supplement primary data. Data was analyzed using content analysis techniques and the findings presented in chapter four. It was established that Fina bank pursues policies and strategies aimed at entrenching its presence in the East African region. In doing this, the Bank benchmarks itself with best practice as per statute, prudential requirements and world class practices. This study has primarily provided a contemporary analysis of realized foreign entry strategies of banks in the East African region with specific reference to Fina bank. Possible implications for internationalization of banks in the near future were considered such as the future of internationalization developments, and the consequences this might have for shareholders and the effects of regional integration on the internationalization of banks.