Factors Influencing Performance Of Commercial Banks In Kenya: A Case Of The Kenya Commercial Bank, Bungoma County

Abstract

The study was meant to investigate factors influencing performance of commercial Banks in Kenya a case of the Kenya commercial Bank, Bungoma county .The study aimed at finding out how clientele, competition, sources of funds, leadership and promotional strategies influenced the performance of Kenya commercial in Bungoma county. The study adapted a descriptive research design as a major method of research where questionnaires were used to collect data from a sample of Kenya commercial bank employees drawn from the three branches in the county..Data collection was both primary and secondary data. Primary data was collected using questionnaires distributed to the banks employees. They were designed to obtain broad range of answers from respondents which were used to answer the research questions. They comprised of close ended questions and secondary data was gathered from CMA, Stock exchange publication, NSE, CBK and annual reports of banks. Descriptive statistics was used to analyze data and the statistical package for social sciences (SPSS 17.0) and advanced excel were used. Reports were tabulated using frequency tables for clarity. The results established the relationship between Performance as a dependent variable and the independent variables like clientele, competion, sources of funds, promotional strategies and leadership. The study findings showed a great influence of clientele on the performance of commercial banks, followed by competition and sources of funds. Leadership and promotional strategies were found to have less influence on performance of the bank. The study suggests to the financial sector players to maintain a sufficient clientele base and embrace healthy competition in order to excel. The findings should draw the attention of scholars, the government and the private sector to help in ensuring economic stability of this country as bankig is a major sector of the economy.