Browsing by Author "Kilika, James M"

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    The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya
    (2017-10-17) Dzombo , Gift Kimonge; Kilika, James M; Maingi, James
    The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.
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    The Relationship between Service Quality and Customer Loyalty in the Kenyan Mobile Telecommunication Service the Relationship Industry
    (IISTE, 2013-11-23) Agyei, Paul Mensah; Kilika, James M
    Customer loyalty has been presented as an indicator of successful quality management practices in both the manufacturing and the service sectors. Due to the rapid growth of the services sector in most economies, there is need to understand how this concept is associated with business practices for supporting quality in the services sector. The study examined the relationship between service quality and customer loyalty in the Kenyan Mobile Telecommunication Service Sector. The SERVQUAL model was adopted in the study. Kenyatta University students drawn from five of its campuses were selected for the population of the study. Pearson product-moment correlation coefficient and regression analyses were the parametric statistical tools used to test the association and effect in the study. A significant relationship was found between service quality and customer loyalty r(313) = 0.47, p<0.05. The SERVQUAL model explained a significant proportion of variance in customer loyalty scores with R2 = 0.306, F(4, 308) = 33.93, p < 0.05. The dimensions in the model predicted different values on customer loyalty: Reliability b = 0.19, t(313) = 2.89, p<0.05, Assurance b = 0.25 t(313) = 3.50, p < 0.05, Empathy b = 0.35 t(313) = 4.90, p<0.05 and Reliability b = 0.37, t(313) = 0.54, p>0.05. In sum, service quality has a positive relationship with customer loyalty. These findings hold implications for industry operators on key areas to pay attention to in order to support the quality of services offered so as to guarantee sustained customer loyalty.