Agency Banking as an Expansion Strategy for Kenya Commercial Bank

Abstract

The banking industry has experienced a rapid growth in terms of profits, deposits, revenues from 2002 to date. This trend has triggered a lot of competition in the banking industry. KCB has managed to weather this competition to stand out as one of the most successful Kenyan businesses today. This paper seeks to explore the extent to which Agency Banking has been explored as an expansion strategy at Kenya Commercial Bank Group Ltd to remain relevant and competitive business. Kenya Commercial Bank is one among 43 other commercial banks in Kenya that form a subset in the set of Financial Institutions. The emphasis of this study is laid on how the structure, s cope and extent to which Agency Banking have been explored as an expansion strategy in KCB. The study also seeks to find out challenges of Implementing Agency Banking as an expansion Strategy at KCB and agency banking relevance as expansion strategy. The project will use the approach of a case study to have an in-depth analysis of how the various factors attributes to strategy, challenges of its implementation. Primary data will be collected through the use of an interview guide and data collected will be analysed through content analysis. Secondary data will be collected through the use of circulars, staff magazines emails and staff notes on training for Agency Banking. Keywords in this project include among others: Banking industry, Kenya Commercial Bank (KCB), Agency banking, expansion strategy, Agency banking strategy, adoption of agency banking by KCB, branchless banking, Central Bank of Kenya (CBK) and Ansoff‟s growth matrix