| dc.description.abstract | The banking industry plays a very crucial role in the Kenyan economy. As the world
business environment changes it is vital that businesses including the commercial banks
adapt to these changes in order to survive and achieve their corporate objectives.
Mergers, Acquisitions, Strategic Alliances, and Joint Ventures are just some of the ways
companies can be guaranteed of continued development, profit and success. However, no
amount of these four would be enough if the company could not even begin to take care
of its customers. Customers are not only always right; they also hold the money to keep
companies running.
The objectives of this study were first to establish the major drivers of strategic alliances
in the banking sector in Kenya. The other objectives were to establish the benefits and
challenges of strategic alliances in the banking sector in Kenya. Literature review was
gathered from various sources with more emphasis on more current literature from
renowned authors in strategic management. The research design used was a descriptive
survey design. The data collection tool used was a questionnaire with closed and openended
questions guided by the contents of the literature review and aimed at achieving
the set objectives.
The study revealed that mergers were the most popular form of strategic alliance in the
banking industry in Kenya. The major motives for strategic alliances were profit and
revenue maximization as well as gaining a competitive edge. The study recommends that
the banks venture in non-aligned partnerships in order to diversify and spread risks. | en |
