| dc.description.abstract | The purpose of this study was to determine the challenges that emanate from external environment and establish strategic responses employed by stockbrokers in Kenya to deal those challenges. The study sought to answer the following research questions; i) What are the challenges that face stockbrokers in Kenya? And ii) What strategic responses stockbrokers employ to counter the challenges?
This research problem was solved through the use of a descriptive survey design. The target population of this study was all the 17stockbrokers operating in the NSE as at June 2011. Data for the purpose of the study was collected using questionnaires to the senior administrators of these stock brokerage firms.
Study findings indicated that major specific threats affecting stockbrokers include stiff competition for the few customers participating in the sector, CMA regulations, negative publicity of stockbrokers due to poor corporate governance in the sector and poor financial performance of stock brokerage firms. Change in technology was another major challenge. On strategic responses applied to counter environmental threats, findings indicate technological adoption, improving customer service and aligning with the demands of the regulators were the major responses.
The following recommendations are made. First, CMA should introduce effective reforms incorporating views of all the stakeholders. Secondly, the political environment should be stabilized to attract foreign investors. Thirdly, NSE should put measures in place to ensure that the current trading system which runs through a wide area network is expanded to cover other major towns in Kenya. Lastly, the study recommends to all stockbrokers to curb insider trading, fraud and unauthorized trading in their companies. | en |
