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Ruth Mueni Kimeu - Master in Business Administration (Strategic Management), Kenyatta University, Kenya

Dr. Sammuel Maina - Department of Business Administration, Kenyatta University, Kenya


Commercial Banks in Kenya are nowadays being operated in a more dynamic business environment that is caused by the new directives issued by the Central Bank of Kenya which have affected overall performance of banking industry. To counter these changes, Commercial Banks require proper strategy formulation and implementation to improve performance and ensure sustainability. The study seeks to prove the impacts of strategy implementation have on the performance of Kenyan commercial banks. The main objectives of the study were to establish the effect of strategy resource allocation, strategy communication and strategy supervision on performance of commercial banks in Machakos County. This study was based on the theory of Resource based view theory and Mckensy’s 7s theory of strategy implementation. This study used the descriptive research design and about a population of 150 respondents was considered. A sample of 25% was taken generating 38 respondents. Both structured and unstructured questionnaires with both open-ended and closed questions were used intensively to gather relevant data that was used in this study. Different questions were used to give the respondents a wide variety and allow room for respondents to answer the objectives in question as exhaustively as it is established. The quantitative data collected was analyzed and determined based on use of descriptive statistics using SPSS (Version 22) and presented inform of percentages, frequencies, standard deviations and means. In addition, the study conducted a multiple regression analysis so as to estimate the study model. Presentation of the data analyzed was in form of tables, charts, frequencies, and graphs for interpretation and to bring out conclusions and make a recommendation thereafter. The study found that mobilization of strategy resources and resource accountability are greatly implemented in their commercial bank, that project performance of organization in other industries and past performance of the business industries were greatly used to project future performance, that means of communication, efficient communication channels and timely communication greatly influence strategy implementation and performance and that strategy evaluation and reports and updates greatly influence performance. The study concluded that strategy supervision activities had the greatest effect on performance of Commercial banks in Machakos County, followed by Strategy resource allocation, then performance targets while strategy communication had the least effect on performance of Commercial banks in Machakos County. The study recommends that Commercial Banks need to enhance communication in strategy implementation throughout the Organization and improve on Senior Managers commitment towards the same and that there is a need for commercial banks to concentrate on strategies that are aimed at increasing profitability result to shareholders wealth and product and service development strategies leading to satisfied customers. The study also recommends that financial institutions should engage benchmarking to enable them improves products, services or work processes as it enhance its competitive strategy and performance.

Full Length Research (PDF Format)