Factors determining the growth of commercial banks in Kenya

Abstract

The objective of this study was to establish the factors determining the growth of commercial banks in Kenya. Specifically it was to establish the factors and determine the relationship between the growth of commercial banks and these factors. The study was a descriptive research using a survey approach. The forty three commercial banks in Kenya made up the population of this study. The findings of the study was that most important financial factor was cash flow management, job safety and security, the upgrading and the educating of members, research and development, having technological edge above others, good management practices of the banks and their sites, maintenance of the high quality of products, commitment to customer satisfaction and maintenance of good relations with clients. The most important government support factor was government assistance/tax incentives. The regression analysis indicated that the constant term and the coefficients of the independent variables were not significant as shown by their -values, but the whole regression was not significant. However, the coefficient of determination showed that the independent variables, strongly explained the growth of the banks. The study therefore recommends that banks aiming at growth should reinforce cash flow management. Further, the banks should focus on job safety and security and the upgrading and the educating of members