Kenya Methodist University Digital Repository

Strategy Implementation and Performance of Commercial Banks in Kenya

2025-10-01T00:00:00Z

Strategy Implementation and Performance of Commercial Banks in Kenya Mwamsindo, Rita Chaga The financial health of Tier One commercial banks in Nairobi County has been challenged by operational inefficiencies, regulatory compliance issues, and the need for technological adaptation. Despite demonstrating strong financial performance, these banks faced rising operational costs, increasing competition, and a growing burden of non-performing loans, factors that necessitated strategic innovation to maintain market dominance. This study aimed at evaluating the effect of strategy implementation on the performance of Tier One commercial banks in Nairobi County, Kenya. Specifically, the study: examined the effect of resource allocation on bank performance; assessed the influence of leadership style; determined the effect of organizational structure; and evaluated the impact of attention to technological requirements. The research was grounded in the Resource-Based View (RBV), Dynamic Capabilities Theory, and Transformational Leadership Theory, providing an integrated theoretical foundation for understanding how strategic components interact to influence performance outcomes. The study adopted a descriptive research design. The population comprised 263 senior and middle-level managers across 11 Tier One banks, from which a purposive sample of 88 respondents from 8 banks was selected. Primary data were collected using structured questionnaires and analysed with SPSS Version 26.0. Descriptive, diagnostic and inferential statistics were used; inferential procedures included Pearson correlation analysis, analysis of variance (ANOVA) and multiple linear regression to determine the independent contributions of each strategy variable. At the bivariate level, significant correlations were observed between bank performance and Resource Allocation (r = 0.630, p < 0.001) and Attention to Technological Requirements (r = 0.644, p < 0.001). Leadership Style showed a positive correlation with performance (r = 0.357, p = 0.002), while Organizational Structure correlated negatively but not significantly (r = −0.187, p = 0.113). Multiple linear regression results indicated that the model explained a substantial proportion of variance in performance (R = 0.747; R² = 0.558; Adjusted R² = 0.532; Std. Error = 0.44660). Regression coefficients were: Resource Allocation (B = 0.332, β = 0.389, t = 3.905, p < 0.001); Leadership Style (B = 0.056, β = 0.048, t = 0.510, p = 0.611); Organizational Structure (B = −0.093, β = −0.081, t = −0.951, p = 0.345); and Attention to Technological Requirements (B = 0.471, β = 0.436, t = 4.680, p < 0.001). These results show that Resource Allocation and Technological Requirements were the strongest and statistically significant predictors of performance in the combined model, whereas Leadership Style and Organizational Structure did not contribute significantly when all variables were considered simultaneously. The study concluded that an integrated strategic approach is required to optimise bank performance: prioritising investments in technology and ensuring flexible, strategic resource allocation are critical; leadership effectiveness should be aligned with these investments for maximum impact; and structural misalignments should be addressed to avoid undermining strategic execution. The study recommends targeted leadership development, greater investment in adaptable digital infrastructure, agile resource-allocation frameworks, and periodic structural reviews to enhance strategic fit. Future research could examine the mediating or moderating role of organisational culture and the long-term effects of emerging fintech on strategy implementation and performance in the banking sector.

Alternative Banking Strategies and Organizational Performance of Tier Three Banks in Nairobi, Kenya

2025-09-01T00:00:00Z

Alternative Banking Strategies and Organizational Performance of Tier Three Banks in Nairobi, Kenya Kinyua, Robert Muchiri The adoption of alternative banking channels has increasingly influenced how commercial banks in Kenya perform. Notably, services like mobile banking, internet banking, and ATMs are central to enhancing banks’ operational efficiency, improving customer interaction, and driving overall institutional performance. Understanding how these alternative strategies impacted various performance indicators, played a vital role in guiding strategic choices and strengthening competitive advantage in Kenya’s banking industry. The study examined the impact of adopting alternative banking strategies and performance of the commercial banks in the country, grounding its analysis in the Resource-Based theory, the Technology Acceptance Model, and the Diffusion of Innovations Theory and Bank-Led Theory, the research examined how the adoption and strategic integration of alternative strategies affected key performance metrics, including financial performance, customer satisfaction, operational efficiency, and strategic outcomes. The study utilized a descriptive research approach to evaluate how alternative banking strategies influence performance of tier-three commercial banks operating in Nairobi City. The study focused on all 21 banks in this category, targeting a total population of 2,123 employees spanning senior, middle, and operational levels. Data was gathered using structured questionnaires administered to a purposive sample of 160 staff members across the three management levels. The data analysis was carried out using SPSS Version 26.0, incorporating descriptive, diagnostic, and inferential statistics. Results from the bivariate analysis revealed that mobile banking, agency banking, and internet banking each had a meaningful positive influence on the performance of the banks. When evaluated together in a multivariate context, mobile banking (β = 0.460, p < 0.05), agency banking (β = 0.475, p < 0.05), and internet banking (β = 0.115, p < 0.05) continued to demonstrate statistically significant contributions to enhanced bank performance. In contrast, ATM banking (β = -0.051, p = 0.451) showed no significant effect due to its p-value exceeding the 0.05 threshold. These findings highlight the critical role of digital banking strategies in improving financial outcomes, enhancing customer experiences, and boosting operational efficiency. The study advocates for increased investment in digital infrastructure, greater customer education, and broader use of technology to streamline banking services. Ultimately, the results enrich the current literature on alternative banking and offer practical guidance for banks aiming to enhance performance through digital innovation.

An Assessment of the Relationship Between the Price Tariffs of a Christian-Affiliated Guesthouse and Customer Choice Behavior in Nairobi County

2024-09-01T00:00:00Z

An Assessment of the Relationship Between the Price Tariffs of a Christian-Affiliated Guesthouse and Customer Choice Behavior in Nairobi County Nyaga, Dorothy K.; Muchai, Peter; Laimaru, Susan Purpose: To assess the relationship between the price tariffs of a Christian-affiliated guesthouse and customer choice behavior in Nairobi County. Methodology: Descriptive survey research design was used on a target population of the study comprising 13 Christian Affiliated Guest houses registered with the Christian Guest Houses Association of Kenya (CGHAK) in Nairobi County. The total number of respondents was 723, including all guesthouse general managers (13), two supervisors (Front Office and Food and Beverage Supervisors) from each guesthouse (26), and all customers based on the average occupancy (684). A census sampling method was used to select guesthouse managers (13) and supervisors (26). Further, the random sampling method was used to obtain the 252 customer respondents. Closed and open-ended questionnaires were used to obtain data from 252 CAG guests while an interview schedule was used to obtain data from 26 CAG supervisors and 13 CAG general managers. For piloting, this study used one randomly selected CAG (10%) in Kiambu and obtained 1 manager, 2 supervisors, and 25 guests (10%) as respondents. Cronbach alpha was used to measure reliability. For validity, the instrument was piloted before the actual data collection process. Quantitative data such as mean and standard deviation was analyzed using SPSS whereas thematic method was used to analyze qualitative data. Data was presented using tables and figures. Results: The highest mean score was observed on the dimension of mode of payment which had an average score of 4.22. This observation implied that one of the reasons that could be attracting guests to remain loyal to a particular guesthouse is a mode of payment of bills the guesthouse has adopted. The least mean rating was observed on fair price tariffs, with an average score of 4.22. This is an indication that fairness in the price tariffs, as a dimension of Price Tariff, is not such an important factor when it comes to choosing a guesthouse. Again, this rolls back to service provisions. That is, an individual would be more willing to pay more as long as the service will meet his/her expectations. Nonetheless, the fact that the fairness of price tariffs was not such an important factor, the overall mean response of 3.9. Conclusions and Recommendations: The study concluded that price tariffs had a positive influence on customer choice behavior. This was based on the fact that versatility of modes paying bills ensured that there was efficiency and convenience in payments. The study recommends that more attention should be paid by the management to payment modes such as mobile money since it promotes security and convenience to the guests.

Christian Affiliated Guesthouse Attributes and Customer’s Choice Behaviour in Nairobi County, Kenya

2025-07-01T00:00:00Z

Christian Affiliated Guesthouse Attributes and Customer’s Choice Behaviour in Nairobi County, Kenya Nyaga, Dorothy Kathambi Christian-affiliated guesthouses in Nairobi County face declining occupancy despite their role in expanding lodging options. Few studies have examined how faith-based affiliation impacts guest house choice in Nairobi. This study examined how price tariffs, service quality, institutional environment, and safety influence customer choice, guided by Consumer Behavior Theory, Theory of Planned Behavior, and Environmental Responsible Behavior Theory. Using a sequential explanatory design (mixed method), data were collected from 291 respondents (managers, supervisors, and guests) across 13 guesthouses. Quantitative analysis revealed service quality (r=0.885) and safety (r=0.790) had the strongest influence, while price tariffs (r=0.285) were least impactful. Qualitative findings highlighted guests’ prioritization of staff responsiveness and environmental policies. Recommendations include adopting flexible payment systems and enhancing security measures. The study’s focus on Nairobi limits generalizability; future research should explore other regions and stakeholder perspectives.

Effect of Employee Training On Service Quality in Public Catering Institutions in Nairobi County

2025-10-01T00:00:00Z

Effect of Employee Training On Service Quality in Public Catering Institutions in Nairobi County Yegon, Erustus Kibet Service quality in Public Catering Institutions is essential for customer satisfaction, operational efficiency, and institutional reputation. However, inconsistent service delivery, inefficiencies, and poor customer satisfaction remain challenges in these units. While structured training programs are recognized as crucial in enhancing employee competencies and service standards, limited research exists on the influence of employees' learning experience, employees’ training content, employees’ training-job alignment and employees’ skill transferability on service quality in Public Catering Institutions in Nairobi County. This study sought to assess the effect of employee training on service quality in Public Catering Institutions in Nairobi County. The research assessed the effects of four specific variables: employees’ learning experience, employees’ training content, employees’ training-job alignment and employees’ skill transferability. Grounded in Kirkpatrick’s Four-Level Training Evaluation Model, Kolb’s Experiential Learning Theory, Social Learning Theory, and the Knowledge-Based View of the Firm, the study employed a descriptive research design. A stratified random sampling technique was used to select 327 respondents from a target population of 2,211 staff members, including Heads of Catering Units, catering managers, and operational staff. Data were collected through semi-structured questionnaires and interviews. Quantitative data were analyzed using descriptive statistics and inferential methods such as correlation and regression analysis, while qualitative data were evaluated thematically. Hypothesis test revealed that employees’ learning experience quality had significant effect on service quality in public catering institutions in Nairobi County. Employees’ training content relevance had significant effect on service quality in public catering institutions in Nairobi County. Employees’ training-job alignment had significant effect on service quality in public catering institutions in Nairobi County. Employees’ skill transferability level had significant effect on service quality in public catering institutions in Nairobi County. The study concludes that effective and strategically designed employee training is a key lever for improving service quality in public catering institutions. Merely conducting training is not sufficient; the training must be responsive to job realities, tailored to institutional goals, and structured to ensure practical application and skill adaptability. These insights affirm that service excellence in the public sector depends not just on resource allocation, but on the relevance and execution of employee development initiatives. Going forward, institutions must institutionalize continuous professional development, integrate modern training techniques such as blended and experiential learning, and foster a culture of ongoing skills enhancement. These measures will not only elevate service standards but also strengthen public confidence in government-run food service programs.

Assessment of Nutrition and Dietary Practices Among Patients with Gastrointestinal Symptomatology at Kenyatta National Hospital, Kenya

2025-10-01T00:00:00Z

Assessment of Nutrition and Dietary Practices Among Patients with Gastrointestinal Symptomatology at Kenyatta National Hospital, Kenya Ndirangu, Faith Wambui Gastrointestinal Symptoms (GIS) represents a range of disorders with unclear pathophysiology, presenting symptoms such as abdominal pain, ulcers, cramps, constipation, nausea, and vomiting. The disease is linked to multiple factors, including genetics, environment, infections, immune dysfunction, and altered gut microbiota. The rising incidence of GIS globally—affecting over 6.8 million individuals—is attributed to increased urbanization, industrialization, and consumption of processed foods. Sub-Saharan Africa, despite reporting an increase in GIS cases, has limited published studies on the condition, highlighting the need for localized research. The study investigated the dietary habits, nutritional status, and food choices of patients with GIS attending Kenyatta National Hospital (KNH). This study assessed 200 randomly selected GIS patients diagnosed by 2023. It aimed to determine their socio-demographic characteristics, dietary patterns, the influence of food choices on disease progression, and their nutritional status. Findings indicated that females (57%) were more affected than males, though gender did not show a statistically significant association with GIS (p=0.76). The majority (40%) were aged above 34 years, and most patients (72.5%) lived in urban areas. Socio-economic factors such as marital status, education, and income had significant associations with GIS (p<0.05). Over 45% of respondents were well-educated and self-employed, and 22.4% reported a history of cigarette smoking. Dietary analysis revealed that 87% of respondents used sugar in beverages, and 87.9% preferred home-cooked meals, with only 8.1% eating in hotels. The most common foods reported to trigger GIS included beans (76.6%), spicy foods (14.1%), chapatti (13.8%), soft drinks (5.8%), and oranges (4.1%). Similarly, intolerable foods identified were legumes (28.9%), chapatti (10.4%), milk (5.8%), and oranges (5.2%). Foods that brought relief included cabbage (23.3%), potatoes (10.75%), milk (8.3%), and carrots (6.2%). Nutrient intake assessment showed excessive consumption of macronutrients compared to recommended daily allowances (RDAs): carbohydrates (154%), protein (193%), energy (127%), and fiber (211%). Consequently, 69% of participants were overweight or obese (BMI ≥26.38 kg/m²), though none were morbidly obese or underweight. Regression analysis showed a significant relationship between BMI and calorie intake (p=0.003), while the relationship between BMI and food frequency was not significant (p=0.680), contrary to most prior research. The study recommends that GIS patients regularly consult nutritionists to receive updated dietary guidance, control portion sizes to reduce excess macronutrient intake, and engage in at least 30 minutes of exercise daily. Weight reduction and careful food selection, avoiding foods that aggravate symptoms, are essential. Additionally, the Ministry of Health (MOH) should develop dietary prescriptions for GIS patients and integrate GIS management strategies into national health policy guidelines.

Influence of Strategic Planning on the Performance of Telecommunication Industry in Somalia

2025-08-01T00:00:00Z

Influence of Strategic Planning on the Performance of Telecommunication Industry in Somalia Hassan Abdullahi, Abdikafi; Mbithi, Mary; Maore, Stephen Despite notable growth, Somalia’s telecommunication industry faces persistent performance challenges due to inadequate strategic planning, leading to inefficiencies, poor resource allocation, and limited adaptability in a highly competitive and dynamic environment. This study investigated the influence of strategic planning on the performance of the telecommunication industry in Somalia. The research adopted a mixed-methods approach, combining quantitative and qualitative data collection techniques to provide comprehensive insights into the relationship between strategic planning practices and industry performance. The study targeted 220 participants across 22 registered telecommunication firms in major urban centers including Mogadishu, Hargeisa, and Kismayo. Respondents included telecommunication managers, strategic planning staff, innovation strategy personnel, and customer relationship managers. Using census sampling, the research achieved an exceptional response rate of 90.5%, with 199 completed questionnaires. Data collection employed structured questionnaires with quantitative analysis conducted using SPSS version 28. The findings revealed strong positive perceptions regarding strategic planning practices in Somalia’s telecommunications industry. The analysis revealed a strong correlation coefficient (R = 0.742) and explanatory power (R2 = 0.551), indicating that strategic planning accounts for 55.1% of variance in industry performance. The regression model proved statistically significant (F = 242.358, p < 0.001), with standardized coefficient (ff = 0.742) confirming the positive relationship. For every unit increase in strategic planning implementation, performance increased by 0.684 units. The study concluded that strategic planning serves as a critical predictor of organizational performance in Somalia’s telecommunications sector, supporting the rejection of the null hypothesis. The study recommended that telecommunication companies in Somalia should prioritize strategy evaluation and control systems, establish performance monitoring frameworks, invest in data analytics, and build institutional capacity to adapt strategies in response to changing market conditions and evaluation findings.

Influence of Strategy Implementation On Performance of Hotel Industry in Kenya: A Case Study of Accor Group Hotels in Kenya

2025-10-01T00:00:00Z

Influence of Strategy Implementation On Performance of Hotel Industry in Kenya: A Case Study of Accor Group Hotels in Kenya Mukiri, Judy Francis The performance of international hotel chains in Kenya, including Accor Hotels, has faced growing pressure from rising customer expectations, technological disruption, and increased competition from both regional and global players. Despite Accor’s strong international brand presence, its Kenyan operations have encountered challenges in maintaining consistent service quality, operational efficiency, and guest satisfaction. Effective strategy implementation is therefore essential to sustain competitiveness and improve performance. This study examined the effects of strategic implementation on the performance of Accor Hotels in Kenya, focusing on four dimensions: employee engagement strategies, technological integration, customer feedback mechanisms, and leadership support. A descriptive research design was adopted, targeting frontline staff, customer care representatives, and managers across eight Accor Hotels in Kenya. A stratified random sampling approach yielded 118 valid responses from a population of 168 employees. Data were analyzed using descriptive statistics (frequencies, percentages, means, and standard deviations) and inferential techniques (correlation and regression analysis). The findings revealed that all four strategic variables had a statistically significant positive effect on the performance of Accor Hotels in Kenya, with leadership support emerging as the most critical determinant. The study concluded that strategic implementation plays a pivotal role in enhancing operational efficiency, customer satisfaction, and competitiveness. The study recommended that Accor Hotels strengthen employee engagement through structured training, recognition, and communication systems; accelerate technological integration by automating operations and adopting customer-facing innovations; enhance feedback mechanisms through real-time digital platforms and systematic complaint resolution; and invest in leadership development programs that emphasize strategic communication, accountability, and empowerment. Through adopting these measures, Accor Hotels can achieve sustainable performance improvements and provide lessons for the wider hospitality industry in Kenya.

Organizational Structure and Performance of Tier One Commercial Banks in Nairobi County, Kenya

2025-07-01T00:00:00Z

Organizational Structure and Performance of Tier One Commercial Banks in Nairobi County, Kenya Rita, Chaga Mwamsindo; Kihara, Peter; Cherono, Vivian The performance of Tier One commercial banks in Nairobi County is increasingly shaped by internal structural dynamics amid rising operational costs, stricter regulatory demands, and heightened market competition. This study investigated the effect of organizational structure— focusing on hierarchy levels, formalization, and span of control—on bank performance. Grounded in Organizational Structure Theory, the research adopted a descriptive design targeting senior and middle-level managers from all 11 Tier One banks. A purposive sample of 88 managers drawn from 8 banks participated in the study. Data were collected through structured questionnaires and analyzed using SPSS Version 26.0, employing descriptive statistics and simple linear regression. The findings revealed strong, negative, and statistically significant bivariate relationships between each organizational structure variable and bank performance. However, the simple linear regression results indicated that the overall influence of organizational structure on performance was not statistically significant (β = –2.14, p = 0.113). This suggests that although structural elements such as hierarchy, formalization, and span of control may individually impact performance, their combined effect does not sufficiently explain performance variations when analyzed within a single model. The study concludes that organizational structure may influence performance outcomes at the individual factor level, but its predictive power is limited when assessed holistically through simple regression. It is recommended that Tier One banks consider streamlining their internal structures by eliminating unnecessary hierarchical layers, simplifying formal procedures, and widening managerial span of control where feasible. Pilot-testing these structural changes in selected units may offer practical insights for enhancing strategic performance in a competitive banking environment.

Agency Banking Strategy and Performance of Commercial Banks of Tier Three Banks in Kenya

2025-01-01T00:00:00Z

Agency Banking Strategy and Performance of Commercial Banks of Tier Three Banks in Kenya Kinyua, Robert Muchiri; Kihara, Peter; Milui, Joshua The performance of commercial banks in Kenya has increasingly been influenced by the adoption and utilization of agency banking, which plays a pivotal role in enhancing operational efficiency, customer engagement, and overall bank performance. This study investigates the influence of agency banking on the performance of tier-three commercial banks in Kenya, focusing specifically on the number of agents, agent network coverage, transaction volume through agents, and agent performance metrics. Grounded in Resource- Based Theory, the Technology Acceptance Model (TAM), Diffusion of Innovations Theory, Bank-Led Theory, and Agency Theory, the research examines how the adoption and integration of agency banking affect key performance indicators. A descriptive research design was used, targeting all 21 tier-three commercial banks in Nairobi City County, with a sample population of 2,123 employees across senior, middle, and operational management. Primary data was collected through structured questionnaires distributed to a purposive sample of 273 employees. Data analysis was conducted using descriptive, diagnostic, and inferential statistical methods with SPSS Version 26.0. The findings revealed that agency banking significantly and positively influenced the organizational performance of tier-three banks in Kenya. The study concludes that enhancing agency banking strategies can improve the operational efficiency of these banks. Recommendations include expanding agent networks, optimizing transaction volumes, and improving agent performance metrics to maximize the potential of agency banking and ensure long-term success.