The relationship between social responsible investing and sustainable financial performance of commercial Banks in Kenya

Abstract

This study sought to establish whether there is relationship between socially responsible investment and sustainable financial performance of commercial Banks in Kenya. The study adopted a descriptive correlation design and targeted all the forty four commercial banks in Kenya. Self administered questionnaire were used for data collection. The study used descriptive statistics including mean and standard deviation, correlation and regression model in data analysis. The study found that there is a positive relationship between social responsible investment and financial performance of commercial banks in Kenya. The study also concluded that the banks have special loans for special groups such as women, the disabled, youth, and aged and religious loans funds as part of SRI activities. The study also recommended that local banks increase social responsible investments as it will benefit the needs of the community while improving financial performance of the bank. The study recommends that banking institutions take up energy saving strategies that will see the protection of the natural resources within the country. The study recommends that banks should also offer subsidized rates to investors that seek to invest in energy saving, environmental and ecological investment