Strategic Responses to the Covid-19 Pandemic by Commercial Banks in Kenya

Abstract

The objective of this study was to determine the strategic responses adopted by banks during the COVID-19 pandemic era, focusing on their adaptability and resilience in the face of unprecedented challenges. The study was guided by dynamic capability theory and chaos theory of management. The inquiry adopted cross-sectional research design. Data was collected from banks in Kenya. Using content analysis and in-depth interviews with 36 participants from various banks, the research explores the views and opinions of the bank managers on the strategic responses they adopted to manage their operations during the pandemic outbreak. The inquiry achieved 86% response rate and more than 36 bank managers were interviewed during data collection. The findings of the study revealed that banks exhibited a range of dynamic capabilities, including agility, innovation, and resource reconfiguration, to respond effectively to the COVID-19 crisis. These capabilities enabled banks to swiftly adapt their operations, customer service, and risk management strategies. The study concluded that the use of strategic agility, adaptability as well as innovations and resource management are important to banks during times of turbulence and poor economic stability. The banks capitalized on digitalization, remote work, and customer-centric approaches to ensure business continuity and maintain trust among their stakeholders. The inquiry recommended the need for banks to adopt modern technology, remote work and customer centric ways in managing their operations. This is imperative for their long term value and success.