An Analysis of Effect of Agency Banking on Profitability of Banks In Kenya: A Case of Kenya Commercial Bank

Abstract

Agency banking is touted as being the solution to the wide spread poverty in most developed countries. The goal of this study was to ascertain how agent banking affected Kenya's commercial banks' profitability. The specific objectives were to determine the effect of agency convenience, agency costs, agency access and agency regulations on commercial banks’ profitability. Using a descriptive approach, the study targeted commercial banks based on the Nairobi CBD. A sample population of 30 out of 111 agents was arrived at. Questionnaires were used to collect the study's data and analysed using qualitative and quantitative data with the aid of SPSS. Tables and figures were used in presenting of the analysed data. This study concluded that cost, convenience, access as well as regulations have a positive effect on the profitability of the banks. The findings will help government, financial institutions, students and scholars alike to improve the life of the population at large.