Strategy Implementation, Interest Rates Capping and Performance of Commercial Banks in Kenya
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Date
2021Author
Gatetua, Kennedy M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The study objective of this study was to determine the effect of interest rate capping on
the relationship between strategy implementation and performance of commercial banks
in Kenya. The theoretical foundation for this study was cognitive theory, evolution
theory and Resource based view theory. This investigation utilized a descriptive design
and cross sectional survey. The target population for the study constituted of the
remaining forty (40) commercial banks and one (1) licensed mortgage financial
institution with branches in Mombasa County, Kenya. Due to the size of the population
for the study, a census survey approach was adopted for study sample size. Therefore,
the sample for the study was all the management level employees in all the commercial
banks in Mombasa. Data collection tool was structured questionnaire. To summarize the
data, descriptive statistics were used. The study adopted Baron and Kenny (1986) threestep
regression model to establish the effect of interest rate capping on the relationship
between strategy implementation and performance of commercial banks. iThe study
found that Strategy implementation is statistically significant to performanceiof
commercialibanks iniMombasa County.iThe studyifurther revealed that Strategy
implementation had significant positive relationshipiwith performanceiof
commercialibanks iniMombasa County. Theistudy alsoifound thatiupon introductioniof
interest rate capping, strategy implementation is mediated by interest rate capping
significantly, influencing performance oficommercial banksiin MombasaiCounty
negatively. Theistudy concludes that increasing the mediating effect of interest rate
capping on strategy implementation will lead to decrease in performance oficommercial
banksiin MombasaiCounty.iThe study recommendsimanagement of the
commercialibanksito conduct in-depth research on the strategies that can be
implemented in their organizations to increase its performance. The study also
recommends banks to establish organizational culture that will boost its performance;
commercialibanks iniKenya shouldiadopt aniadjustable andidynamic
organizationaliculture soias toiensure successfulistrategy implementation.iTheibanks
can also embrace Reward and Recognition system that will motivate employees
therefore increasing their performance which will in turn increase the performance of
the bank. The government to review the policies on interest rate capping to ensure they
are favorable to both the bank and its customers; this will increase performance of the
bank and therefore increase general performance of the country’s economy.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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