REVENUE RAISING VALUE CREATION STRATEGY AND PERFORMANCE OF COMMERCIAL BANKS IN KENYA

Abstract

The general aim of the study was to regulate the effect of revenue raising strategies on performance of commercial banks in Kenya. This study adopted a descriptive cross sectional research design. The unit of analysis included all the 41 commercial banks in Kenya. The commercial banks that this study targeted are those banks that were in operation between the year 2015 and 2019. The research used census approach and targeted all the 41 commercial banks in Kenya. From primary data, descriptive outcomes displayed that most banks have introduced new products to meet the varied needs of our customers. Most banks have diversified its activities to attract more customers and increase its income. In addition, findings showed that most Kenyan banks has diversified its products to attract more customer segments. Most Kenyan banks have engaged in profit making investments. In addition, banks have improved the customer service to build customer loyalty. Outcomes further displayed that revenue raising strategy was positively and significantly linked to performance of commercial banks. Hypothesis outcomes displayed that revenue raising strategy have a significant influence on commercial banks performance. However, secondary data correlation outcomes displayed that revenue raising strategy had a weak positive and noteworthy association with performance of commercial banks. In addition, hypothesis outcomes displayed that revenue raising strategy have a significant influence on commercial banks performance. The study also recommends that banks and other financial institutions ought to introduce new products that meet the varied needs of their customers. In addition, banks need to diversify their activities so as to attract more customers and hence increase their revenue. The study also recommends that banks need to look for more profit-making investments and invest in them so as they can boost their performance.