Abstract: Kenya has evolved in innovation over the years, her being the home to an early entrant form of mobile money banking with world class standards. The innovation in financial sector has propel the industry to higher heights. This thesis was to study the role of innovations in the commercial banks in Kenya and especially on KCB groups in Nairobi County. The study focused on the role of innovations on financial performance of commercial banks. The researcher was guided by the following objectives; to determine the role of product innovation, process innovations and ICT integration on financial performance of KCB bank. The scope of the study was in all KCB Group braches in Nairobi County. The sample size was 132 staffs of the target population by using the Loren Morgan formulae; the target population was 200 management staff in KCB Group branches. This research was adopted a descriptive survey design with questionnaire being the basic tool for collection of primary data. Data was collected by use of questionnaires. Data was analyzed and presented using descriptive and inferential statistical tools to determine the relationship between independent and dependent variables. In addition, advanced statistical technique was a used. SPSS (Statistical package for social sciences) version 23 model was used in data analysis. The information was displayed using tables and graphs. The study depicted that there is proper significant positive correlation on product Innovation, ICT integration, Process Innovation and Marketing Innovation to the role of innovations on financial performance of commercial banks in Nairobi County in Kenya. The independent variables were good predictors of dependent variable. This research did not exhaust bank innovations hence gave a recommendation for further study to cover innovations like securitization, credit guarantees and agency banking and their impact on financial performance in banking institutions.
Keywords: INNOVATIONS, PERFORMANCE, COMMERCIAL BANKS.
Title: THE ROLE OF INNOVATIONS ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NAIROBI COUNTY, KENYA
Author: MURIUKI SAMMY MURIMI, DR.YUSUF MUCHELULE
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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