Impact of Covid 19 Pandemic on Profitability of Commercial Banks in Kenya.

Abstract

Consequently, the study was guided by a single primary objective: to learn how the COVID-19 pandemic has affected the nation's financial institutions, specifically commercial banks in Kenya, which would represent the general public. Thus, the study aimed to determine the impact of the Coronavirus pandemic on financial performance. A descriptive research design based on quantitative data will be employed in the study. The websites of the individual banks will be consulted for secondary data collection. From 2018 to 2022, commercial banks in Kenya, spanning all levels, will make up the study's target population. Descriptive and regression statistics were employed for analysis after collecting the data. Return on assets (ROA) had a mean of 2.972727 and a SD of 0.3073416 in the pre-COVID era, according to descriptive data. With a SD of 1.5576928, the average GDP growth rate was 3.95454. The SD of the interest rate level was 0.7356124 and the mean was 10.227273. The currency rate had a mean of 2.17545 and a SD of 0.706. The average ROA value after COVID was 3.472727, with a SD of 0.3319193, according to descriptive data. The GDP growth rate had a mean of 3.454545 and a SD of 1.678741. With a SD of 0.7298428, the average interest rate was 10.227273. For the currency rate, the average was 2.185454 and the SD was 0.7244. At the 0.05 level of significance, the t-test resulted in a p-value of 0.0000006822. After comparing the profitability of Kenyan commercial banks before and after the pandemic, it was determined that there was a notable change. The study found that before and after the COVID-19 outbreak, the profitability of Kenyan commercial banks was heavily influenced by GDP rate, interest rate, and foreign exchange rate.