Post merger implementation strategy for the financial services sector: a survey of mergers in the Kenyan banking sector
The main objective of the study was to investigate post merger implementation strategy on the merged banks. The study focussed on all the 8 mergers and acquisitions that had been witnessed in Kenya from 1995. The staff in the banking sector included senior managers lower level managers and other subordinate staff currently working at the bank mergers found in Kenya. The study made use of questionnaires and interview guides in order to collect all relevant information on post merger implementation strategy on the merged banks. The questionnaires were used to collect information from the senior employees including senior managers and departmental heads. A content analysis and descriptive analysis were employed. The content analysis were used to analyze the respondents’ views about the post merger implementation strategy in the Kenyan banking sector. The study concludes that most of the banks employees were aware of the government policies that affected mergers and acquisitions in the organization. The study also concludes that restructuring strategy was the main reason that prompted the banks to merge and also to increase asset/liquidity. The study also concludes that most banks did not consult their staff during a merger and or acquisition as data from the study indicated. In addition, the study found that most of the banks had been faced with communication and financial resources as barriers to the merger. The study recommends that institutions need to consult staff and employees before merger. An institution that has employees who may be affected by a proposed merger is required to provide information to an employee body or communicate the information in form of meetings – which may be a trade union or, in default of that, employee representatives. Where both exist the employer must consult with the recognised trade union(s). The study also recommends that for institutions to reduce barriers to mergers, they need to innovate new products and services with combined expertise, to create more wealth, to increase capacity and scale among many other reasons for the combination.