| dc.description.abstract | In Kenya, agency banking is regulated by the Finance Act, 2009 that became operational in January 2010. The Central Bank of Kenya published on May 3rd 2010 the guidelines under which the agency banking model will be operated in Kenya and which are meant to minimize risk inherent in the agency banking system by providing a clear regulatory framework. This marked the launch of agency banking in Kenya whereby banks' deposit taking, microfinance institutions and mortgage finance companies could roll out their agency banking services, as per the Guideline on Agent Banking- CBKlPG/15. This study sought to determine the challenges of
implementing agent banking strategy in commercial banks in Kenya.
The research adopted descriptive survey approach focusing on the commercial banks in Kenya that are currently operating agency banking model. The population of the study consisted of three commercial banks, KCB Group, Equity Bank and Co-operative Bank with a target respondent of 120 staff members. Sample data was collected by use of questionnaire administered through 'drop' and 'pick' technique by the researcher. Personal Interviews were also conducted to validate the data obtained from the questionnaires. Data analysis method used was based on the qualitative approach using descriptive distribution tables, mean and standard deviation to improve the presentation of the analyzed results for ease of interpretation.
The study revealed that all the three commercial banks under study had implemented agency banking for more than one year and they invested their time and efforts in the strategy before its full implementation. The research indicated that the factors agent banking strategy included fraud and money laundering and fear of break into the premises of the agents. The least of the challenges was lack of trust to the agents and government set policies on agent banking. The research indicated that it is the management's responsibility ﾷto ensure that the strategy is well communicated and understood organization wide before the implementation process begins.
Clear understanding of a strategy gives purpose to the activities of each employee and allows them to link whatever task is at hand to the overall organizational direction Lack of understanding of strategy is one of the obstacles to strategy implementation process. In adequate resource allocation; availability of skilled manpower, material and financial resources are some of the challenges facing the implementation of agent banking strategy. | en_US |
