Agency Banking and Profitability of Commercial Banks Listed at the Nairobi Securities Exchange, Kenya
Loading...
Date
2025-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Listed commercial banks in Kenyan context are encountering concern in regard to their profit trajectory. This is supported by decreasing Return of Equity in the period 2018-2022. Thus, the study aimed at determining implication of agency banking liquidity, fee, market share and perceived risks with age as a moderator in relation to profit trend. The transaction cost theory, market power theory and public interest rate theory guided this study. Key empirical inquiries were reviewed to suggest gaps and development of conceptual framework. The paradigm adopted was positivist supported by explanatory design. The study adopted direct regression model and moderation regression model to achieve the analysis of the findings. A total of twelve listed banking entities were targeted on the period 2019-2023. Insights were obtained from auxiliary sources and analysis was through descriptive and inferential tools using SPSS software. The analysis started with diagnostic tests that validated the regression model. Key ethical concerns were adhered during data collection in this study. The analysis was that agency banking liquidity, fee, market share and perceived risks all exert significant implication on profit trend moderated by age. It was concluded that agency banking is a core element that drives profit trend of an institution. Managers and policy makers working with commercial banks in Kenya should implement a robust risk-based management framework to mitigate against agency banking risks for greater profits.
Description
A Thesis Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Science (Finance) of Kenyatta University, October, 2025
Supervisor:
1.Moses Odhiambo Aluoch
2.Mark Suva