Mergers, Acquisition and Financial Performance of Commercial Banks in Kenya

dc.contributor.authorChengo, Fadhili Dennis
dc.date.accessioned2025-07-24T12:46:50Z
dc.date.available2025-07-24T12:46:50Z
dc.date.issued2025-05
dc.descriptionA Research Project Submitted to the School of Business in Partial Fulfilment for the Award of the Degree in Master of Business Administration (Finance Option) of Kenyatta University, May, 2025 Supervisors; 1. Ng’ang’a
dc.description.abstractMergers refers to an agreement that unites firms in which one firm is formed after the event while Acquisition refers to the purchase and ownership of a controlling stake of the other firms share capital. Mergers and acquisitions has been a source of growth option for several firms; whose main goal is to maximize the shareholders’ wealth. Numerous scholars around the globe have failed to establish through a report which is conclusive on Mergers and acquisitions impact on financial performance of the resultant firm, by putting into consideration legislative amendments that may take effect, therefore providing the basis for this research. The goal was to discuss Mergers, acquisitions and Financial of Kenyan commercial Banks guided by the following variables forming the specific objectives: customer portfolio, market share, shareholders value and income diversification. The study also used monopoly-market power theory, theory of financial synergy, resource-based theory and agency to expound on the specific objectives. The causal design was used in the study; the research was conducted in Kenya with a target of 10 banks which merged during the period of study (2013-2021) out of 38 licensed to operate, and used secondary data captured from official Central Bank of Kenya, supervisory reports and statements showing the status of commercial banks under review. It further conducted predictive statistics that included multivariate regression and findings analyzed through excel and Statistical Package for the Social Sciences software (version 20) respectively data presentation done in form of tables.The study was restricted to banks based in Kenya: Combinations of businesses had a beneficial influence on profitability and dramatically manifested its outcomes as per findings reported. It supports the findings of lovestam, kiran and Ingham (2011), who examined the effects of mergers and acquisition on the 500 top companies (without focusing specifically on the banking sector). They findings illustrated through regression analysis that merged banks experienced an upward trend in return on equity, while correlation analysis depicted a strong relationship between the dependent variables and independent one, notably banks after merger would diversify their sources of income by using a variety of creative concepts in order to boost their profits
dc.description.sponsorshipKenyatta University
dc.identifier.urihttps://ir-library.ku.ac.ke/handle/123456789/30809
dc.language.isoen
dc.publisherKenyatta University
dc.titleMergers, Acquisition and Financial Performance of Commercial Banks in Kenya
dc.typeThesis
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