Strategic responses to global challenges by commercial banks in Kenya

Abstract

The commercial banks in Kenya are now operating in a more competitive business environment than before, and the importance of strategic management cannot be overemphasized, because it determines how an organization reacts to competition and other business environmental challenges. The way a commercial bank reacts strategically, to this challenges will determine its survival and even prosperity. The purpose of this study was to find out the kind of challenges that the Kenyan commercial banks face from competition. This study also documents the strategic responses that these banks have put in place and how they have performed on the basis of these responses. The study was conducted in Nairobi where all the commercial banks have their head offices. The convenient or purposive sampling method was used in this study. Data for this study was collected by means of questionnaires, observation and interviews. The quantitative data was analyzed using descriptive statistics like the measures of central tendencies, frequencies and tables and with the help of the Statistical Package of Social Sciences the analyzed data is presented in charts, graphs and cross tabulations. The findings of this study reveal the nature of challenges faced by the commercial banks in Kenya as a result of competition. The study findings also indicate how these banks have responded to these challenges and the success of these strategies