INVESTIGATING INFLUENCE OF STRATEGIC LEADERSHIP ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Julius Suka Kasuni - Mount Kenya University, Kenya
Dr. Evans Nyamboga Mandere - Mount Kenya University, Kenya
Dr. Phelista W. Njeru - Mount Kenya University, Kenya
ABSTRACT
The defining feature of Strategic Leadership, in corporate governance is the establishment of a clear road map which defines the purpose and future of the corporation. Central Bank of Kenya financial reports showed a declining trend during the period 2015-2019. Returns on Assets (ROA) declined from 4.51% to 3.84% and Returns on Equity (ROE) from 29.4% to 25.6%. The Study sought to critically analyze influence of Strategic Leadership on Financial Performance of Commercial banks in Kenya. The study targeted 112 respondents from 8 commercial Banks in Tier 1 of the Central Bank of Kenya (CBK) Classification. The researcher used Exploratory Research Design for undertaking the study. Primary data were collected by use of both a closed-ended and open-ended questionnaire. Data analysis was done by use of both descriptive and inferential statistics. The analyzed data were presented using tables. The finding of the Study was that there was a significant positive correlation between Strategic Leadership and Financial Performance of Commercial Banks in Kenya. The study recommended that Strategic Leadership be entrenched in corporate governance in commercial banks to improve financial performance. The findings of this study were generalized and recommended for use in the banking industry in Kenya.