Operational Efficiency and Profitability of Kenyan Commercial Banks

12 Pages Posted: 4 Oct 2013

See all articles by Isaiah Miencha

Isaiah Miencha

Bharathidasan University - Department of Commerce and Financial Studies

Murugesan Selvam

Department of Commerce and Financial Studies, Bharathidasan University

Date Written: October 4, 2013

Abstract

The commercial banks deals with most liquid asset (cash) of people and helps them for the stability and growth of economy. Kenya is one of the important East African Countries. It has a population of 40 million people. The policy frame work of Kenya combines socialistic and capitalistic features with a heavy bias towards private sector investment. However, the last couple of decades in Kenya have witnessed continuous change in regulation, technology and competition in all sectors including financial services industry. The rising cost ratio and declining profitability are mainly due to increased competitive pressure from global players. To assess the stability of the banking system, it is therefore crucial to benchmark the performance efficiency of banks operating in Kenya. An efficient banking system contributes in an extensive way to higher economic growth in Kenya. This paper investigates the performance analysis of Kenyan Commercial banks. It is found that private banks performed relatively well compared to public banks sector and foreign sector banks in Kenya.

Suggested Citation

Miencha, Isaiah and Selvam, Murugesan, Operational Efficiency and Profitability of Kenyan Commercial Banks (October 4, 2013). Available at SSRN: https://ssrn.com/abstract=2335851 or http://dx.doi.org/10.2139/ssrn.2335851

Isaiah Miencha (Contact Author)

Bharathidasan University - Department of Commerce and Financial Studies ( email )

Tiruchirappalli, Tamil Nadu 620024
India

Murugesan Selvam

Department of Commerce and Financial Studies, Bharathidasan University ( email )

Tiruchirappalli
Tamil Nadu
India

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
577
Abstract Views
2,194
Rank
95,911
PlumX Metrics