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Waithaka Charles Chege - Master of Business Administration, Kenyatta University, Kenya

Dr. Linda Kimencu - Department of Business Administration, Kenyatta University, Kenya


Bank restructuring is usually undertaken to address the problems the banks are experiencing internally as a result of changes in the business environment, make them better organized or with an aim to enhance the financial performance of the organizations. The objective of the study is to investigate the influence of restructuring strategies on the performance commercial banks in Kenya, with a focus on Kenya Commercial Bank (KCB). The study will specifically seek to examine the influence of financial restructuring, portfolio restructuring, organizational restructuring on performance of KCB. This study is guided by Contingency theory, Resource Based Theory and Transaction Cost Theory. The study adopted a descriptive design. The study targeted 235 employees in KCB headquarters in Nairobi. The sample size was71 respondents who were picked using stratified random sampling technique. The study collected primary data through use of a questionnaire. The questionnaires were designed to answer the research questions and were administered to the staff of KCB bank. The questionnaire were first checked for validity and reliability. The validity was checked by subjecting the questionnaire to a panel of peers to assess whether each measurement question in the questionnaire was essential, useful or necessary. Reliability of the questionnaire was tested through Cronbach’s alpha test. The collected data was analysed through descriptive and inferential statistics. The descriptive statistics including means, standard deviation and frequency distribution were used to analyze the data. The inferential statistics included the use of a multiple linear regression model to establish the relationship between variables. The analysed data was  presented using pie charts, bar charts, percentages and frequency tables. The study found out that the bank employed to a great extent financial restructuring strategies, portifolio restructuring strategies and organizational restructuring strategies. The study alsdo found out that financial restructuring strategies, portifolio restructuring strategies and organizational restructuring strategies had a positive and significant relationship with performance of the bank. The study concludes that the three restructuring strategies significantly influences the performance of commercial banks. The study recommends that there is need for banks to have adequate resources, increased management efficiency, and strengthened operational capacity for continued success of restructuring programs or strategies. This studyis expected to be of value to the management of Kenya commercial bank,to CBK as the regulator and policy maker in the banking sector in Kenya and to tacademicians and researchers.

Full Length Research (PDF Format)