Determinants of Non-interest Income in Kenya Commercial Banks
Abstract
Non-interest income has become an gradually imperative source of revenue for
commercial banks, driven by the need to diversify income streams beyond traditional
interest-based activities. This study was motivated by the growing significance of noninterest
income in enhancing the financial performance of banks, especially in the
context of technological advancements and changing customer preferences. The
primary objective of the research was to determine the determinants of non-interest
income among commercial banks in Kenya. The study was anchored on the Resource-
Based View Theory, supported by Transaction Cost Economics Theory and Financial
Intermediation Theory. A descriptive research design was adopted, utilizing secondary
data from 39 commercial banks in Kenya for the five-year duration between 2019 and
2023. The study focused on key variables such as firm size (total assets), deposit levels,
technology integration (volume of fintech transactions), loan portfolio (ratio of loan
fees to total loans), and foreign exchange transactions (foreign exchange fees). Panel
regression, correlation analysis, and descriptive statistics were used to analyze the data...
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1919]
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