Internationalization of Commercial Banks in Kenya
View/ Open
Date
2013-11Author
Mwangi, Evelyn W
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
This study was conducted on the internationalization of commercial banks in Kenya
which was the key objective of this study. Commercial Banks have also developed
strategies to enable them internationalize and maintain a competitive edge in the market
Internationalization has helped Kenyan commercial banks to do a significantly better job
of providing what customers are looking for thereby enabling the bank to earn a
competitive advantage. Internationalization is important for growth of companies in
countries that allow free market model of business has attracted entry into new markets
requiring tact and strategy. The research design involved a cross sectional survey adopted
in all commercial banks in Kenya to give an insight of the internalization of banks in
Kenya. Data was collected using a questionnaire that was administered through drop and
pick later method. Percentages, frequencies, pie charts, mean and standard deviation were
used to analyze internationalization of commercial banks in Kenya. The study found that
local commercial banks are quite sluggish to internationalize their ventures. There are
several explanations for this finding: The management of commercial banks in Kenya is
largely autocratic and therefore major decision-making processes are limited to a few
leaders; managers are lowly informed about how businesses internationalize they lack
adequate skills; lack of definite investment incentives in the target foreign market and;
poor financial capacity to expand their banking business. The study recommends that
managers of commercial banks in Kenya should raise their entrepreneurial skills to a
global level. This can involve things like performing market analyses and studying
foreign cultures and business strategies employed by similar businesses in other
countries. In doing so, the respective management panel or specific department should
create atmosphere that facilitates exploration of international markets with great reap
benefits for the bank in question. Further research on the same area can be done in
commercial banks outside Kenya that are similar in terms of size and areas of
intervention. Findings can be compared to assess if there areas of commonalities or
unique factors. The findings of this study and application thereof are limited to
commercial banks in Kenya. They may not be applicable directly to other organizations
operating outside the Kenyan banking industry.
Citation
A Research Project Submitted In Partial Fulfillment Of The Requirements For The Award Of Master Of Business Administration, School Of Business, University Of Nairobi.Publisher
University of Nairobi School of Business