Challenges Facing Banking Industry in Kenya

In: Business and Management

Submitted By boat55
Words 4741
Pages 19

This project is my original work and has not been presented for any award in any university

SIGNATURE: ______________ DATE: _______________

STUDENTS NAME: ___________________________________________________


This research project has been submitted for exam with my approval the university supervisor

SIGNATURE: ________________ DATE: ______________





This work is dedicated to my mother Mrs. Perez Akinyi, and my sister Yvonne Atieno for their support in the course undertaking my research work


I wish to thank the almighty God who has sustained me throughout this project

I would also wish to thank my supervisor Mr. Geoffrey Kinyua for his valuable patience and assistance in accomplishing this project

I would also wish to thank the technical staff of K.C B jogoo road branch for their help and cooperation


With reference to K.C.B this research is carried out to investigate the challenges facing the banking industry in Kenya. The specific objectives are; to investigate whether theft cases in banks are a major problem, to establish if ATM card skimming is a problem to the banking industry in Kenya, to determine if high interest rates are affecting the banking industry in Kenya negatively, to find out if mobile money transfer services are becoming a competition to banks in Kenya. The sample design was stratified random sampling so as to obtain data…...

Similar Documents

Banking Challenges

...Existing and future challenges The banking industry in India has a huge canvas of history , from traditional banking practices of Britishers to reforms period, nationalization to privatization of banks and now increasing numbers of foreign banks in india. Now expectations and well as level of services are increasing due to emergence of IT and competition in the market. This has created various challenges and opportunities for Indian commercial banks. A few of them are listed below. Rural : The banking in India is fairly mature in terms of supply, product range and reach even though reach still remains a challenge for private sector and foreign banks . Consequently there have been a few instances of inorganic growth like ICICI Bank Ltd merged with Bank of Rajasthan Ltd to increase its market share in rural market and increase the market share significantly. Management of Risks : The growing competition increases the competitiveness among banks. But existing global banking scenario is posing threats for Indian Banking Industry. The three types of risk are Commercial banks foreign exchange risk , credit risk and operating risk To offset these Mergers and Acquisition have increased and risk management capabilities have been improved. Market Discipline and Transparency : Transparency and disclosure norms are accepted as part of corporate governance practices. Expectation is growing to be more responsible and accountable to investors. Movement of NPAs, capital, provisions,......

Words: 418 - Pages: 2

Challenges Facing Service Delivery in Hotel Industry in Kenya

...CHAPTER ONE INTRODUCTION OF THE STUDY This chapter examines the background on the study, the statement of the research problem and the purpose of the study. The research objectives research questions, the significance of the study, and limitation of the scope of the study are also explained. 1.1 Background of study. Hotel industry is all forms of business relating to provision of accommodation in the lodging, food and drinks and various types of other services that are interconnected and form intended for the public services, both of which use the lodging facilities or who simply use the services or the production of certain services of the Hotel. As such Hotel mean commercial establishment providing lodging to travelers, tourist and sometimes to permanent residents and often having restaurants, meeting rooms, stores that are available to general public. Hotels are being classified into “star"(1-start-o5-star) even though there are no standard methods of assigning those rating and compliance with the customary requirement is voluntary. Hotel chain provides a uniform standard through out non-chain hotel(even within the same country)may not agree on the standard, although both World Health Organization (WHO) and International Standard Organization(ISO)have been trying to persuade Hotels to agree on some minimum requirement as world norm, the entire membership of Paris base International Hotel and Restaurant. Association opposes any such moves. According to (IH&RA) to...

Words: 13138 - Pages: 53

Challenges Facing the Fashion Industry in Ghana

...which the fashion industry operates the world over has become turbulent, unpredictable and therefore, difficult to exert managerial control. Cultures around the world are constantly influencing each other; hence, the world’s cultures are changing fashion constantly. Also, social, economic, political and legal factors keep changing than before. Competition in the fashion industry is so rife such that the survival of fashion organizations cannot be guaranteed (Stuart, 1995). During the last decade, the developments of new technologies all over the world and growing globalization of countries economies have produced the fastest changes ever. The fashion industry in Ghana, especially, the clothing sub sector (which is the focus of this study) has not been without the effect of economic, political, social, cultural and legal pressures brought to bear on all organizations. In recent years, protectionism has given way to globalization. With that change, Ghanaian clothing sector of the fashion industry has had to compete with imports from low wage countries. Retailers, unencumbered by protectionism, have also seized on the opportunity, often choosing to go directly to offshore manufacturers. As retailers become larger and more globally connected, they continue to build global brands marketed around the world. In doing so, they eliminate many Ghanaian clothing companies from their supply chain. The result has been major market share declines and job losses in the industry. ......

Words: 6584 - Pages: 27

Challenges Facing the Music Industry

...Challenges facing the Music Industry As Albert Moran puts it, “film is an economic commodity as well as a cultural good” (Albert Moran, 1996) and therefore, the struggle to dominate the market for films and music has continued for such a long time. These cultural products because of the industrial processes they follow of production, distribution and consumption fall into the category of an industry and are immensely affected by the forces of the market. Distribution is the key factor in determining who would rule the industry as it forms the link between the production of the media goods and their exposure to the target audience. Over the years the cultural industry has evolved imbibing newer technologies and making space for newer companies to make their mark. This process of evolution has been intercepted with changes in its economic and sociological structure owing to the external economic, social and political factors and also technological advancements. Ownership of the media forces to a great extent amounts to a huge control over the global economy and also means greater political and cultural power. Hesmondhalgh, in his book, The Cultural Industries, points out that there has been an "interweaving of change and continuity" in the cultural industry since the 1970s (Hesmondhalgh, 2007). However, this hasn’t ever been a smooth process for the older and established companies who had to face challenges from the new market players. The music industry had to grow from......

Words: 2676 - Pages: 11

The Music Industry: Facing New Challenges?

...that you'll look bad in comparison. This example demonstrates how contrast effects can distort perceptions. We don't evaluate a person in isolation. Our reaction to one person is influenced by other persons we have recently encountered. An illustration of how contrast effects operate is an interview situation in which one sees a pool of job applicants. Distortions in any given candidate's evaluation can occur as a result of his or her place in the interview schedule. The candidate is likely to receive a more favorable evaluation if preceded by mediocre applicants and a less favorable evaluation if preceded by strong applicants. Projection It's easy to judge others if we assume that they're similar to us. For instance, if you want challenge and responsibility in your job, you assume that others want the same. Or, you're honest and trustworthy, so you take it for granted that other people are equally honest and trustworthy. This tendency to attribute one's own characteristics to other people—which is called projection—can distort perceptions made about others. People who engage in projection tend to perceive others according to what they themselves are like rather than according to what the person being observed is really like. When observing others who actually are like them, these observers are quite accurate—not because they are perceptive but because they always judge people as being similar to themselves. So when they finally do find someone who is like them, they......

Words: 5222 - Pages: 21

Banking Industry

...Introduction The banking industry has always been susceptible to economic fluctuations. The subprime mortgages crisis, that started to be felt in 2007 and is still going on, is not an exception. Although it had consequences all over the world, the main effects were seen in American financial markets, followed by the European ones. The top ten banks of the world also suffered the consequences; these can be seen in the changes occurred among these leading institutions in terms of market capitalization and also total assets. After several years of believing in free markets, capitalism and no government intervention, the whole scene has changed. During this period, the governments, acting together with their respective central banks, assumed a more interventionist role, trying to regulate the economic fluctuations triggered by the crisis. It is interesting to analyse the effects all these changes had (and still have) on the banking industry. In the following paper, I am going to present a ranking of the world leading banks (by market capitalization and total assets) and analyze the results in order to observe the impact of the financial crisis on these banks’ drivers. Context From World War II until the late 70’s, banking was a stable activity that was not so sensitive to economic fluctuations. From there on, deregulation and liberalisation transformed banking into an unstable activity, completely responsive to changes in the economic environment. Technological change created...

Words: 2691 - Pages: 11

Abc Facing Challenges

...Title : Opportunities and Challenges that ABC Corporation is Facing Executive Summary Different strategies that key executives deliver to his/her sub-ordinates could make totally different cultures and business models of the company. ABC Corporation, a US listed chemical company is now under this transformation from a simple reporting hierarchy company to a matrix organization. Its aggressive vision till 2020 would amaze lots of the outsiders including shareholders and external analysts by boosting its double digit EBIT growth year over year. Behind this fantastic financial performance, ABC Corporation is actually facing its own internal challenges which make ABC staff feeling heavy in workload and low morale in the office. However, I don’t believe that this phenomenon will last long as lots of statistics and comments are showing that, ABC Corporation is running out the blue. Company Overview ABC Corporation is a diversified chemical company serving agricultural, industrial, environmental, and consumer markets globally for more than a century with innovative solutions, applications and quality products. ABC Corporation was listed US Stock Exchange in 2000. In 2013, ABC had annual sales of approximately $3.9 billion. The company employs approximately 5,600 people throughout the world, and operates its businesses in three segments: ABC Agricultural Solutions, ABC Health and Nutrition, and ABC Minerals. Company Strategy “Feeding the world, protecting health, and......

Words: 1794 - Pages: 8

Facing Mt Kenya

...In his book, Facing Mount Kenya, Jomo Kenyatta establishes the history and culture of the Gikuyu society. Articulated from an African perspective, the book demonstrations both the rich culture of the Gikuyu society, and even the threats of European impact over a population of people whose whole lives are centered on social customs and religious ideas. He defends the African customs and troubles the British dominated in Kenya. Certain points are cited throughout his reading with respect to the explanation of Gikuyu society. Oral tradition, family clan, age grouping, marriage, religion and sexuality play a reflective role in the lives of the Gikuyu culture. Kenyatta discovers the British taking advantage of the work-force the Gikuyu provide. He additional states that the British took away their right to religion and has described them as an uncivilized and sluggish society. Kenyatta explains that the British took away their right to religion and has described them as an uncivilized and sluggish society. He states that oral custom is a vital trait that a young child in the Gikuyu culture acquires from his birth. Writing and reading were not ideal abilities since the oral tradition permitted the child to grow and adapt to this type of personality. The child was directed through the teachings of his parents so that one day he or her may be able to carry this tradition to their offspring. Folklore, tribal dances, tribal customs, and farming were all taught orally and through......

Words: 799 - Pages: 4

Problems Facing Kenya

...Kenya the land of cancer. I look at the Kenyan society today and the best name that comes in my mind is “cancer’’, a deadly disease, if it’s not in the government and its leaders then in the public institutions, like universities, hospitals and the public road infrastructure. The following are the major issues affecting Kenya and at large, the African continent, ‘’ the dark continent indeed’’ 1. Corruption – the common phrase used by the leader is ‘’ it’s our time to eat’’. After elections, the wining team which for a long time will always be from specific community, tries as much as possible to occupy all the appointment positions in the government to ensure that they gain maximally from the national cake ‘’ natural resources’’ for example, Kenya security organs are occupied with one community and at any time they can decide to chair a national security meeting in their own dialect. During the time of grand coalition government from 2007-2012, the office off the prime minister, was composed of one ethnic group, from where the prime minister emanates, in leadership , the system of Kenya doesn’t trust an outsider, i.e., if the president is from kikuyu, then the top positions in the defense force are from his ethnic community. The police force is not left out in this vise, to compensate for their little salaries, they practice bribery along the main Kenya high ways, they allow unworthy vehicles to use the roads at a prize of ksh 100 per tribe. In their recruitment,......

Words: 360 - Pages: 2

Challenges Facing the Finance Industry

...Challenges Facing the Finance Industry This paper will explore three problems facing the finance industry. Those problems include cybersecurity, compliance with regulation, and risk management. Three solutions will also be addressed later in this paper. 1 When one thinks about the finance industry, banks, credit agencies, insurance companies, and equity firms may come to mind. Over the years financial institutions have not been up to par. With the financial crisis that happened in 2008, the world is still recovering and paying high taxes for the amount of debt that it acquired. As a result of that crisis, the financial industry faces challenges that include cybersecurity, complying with regulation, and risk management. Although the industry faces these challenges, there are solutions that can make things operate smoother. One of the finance industries biggest challenge this year is cybersecurity. According to Hewitt, “The potential hacking of sensitive customer information is a top threat facing the financial industry in 2014.” Technology is vastly changing, and more people are beginning to use different softwares to handle the financial side of the business. With technology evolving, hackers are getting more experienced, and cyber-attacks are beginning to occur more frequently and more wide spread than they have been in the past. According to Rodriguez, “As the cost of technology decreases, the barriers to entry for cybercrime drop, making it......

Words: 2377 - Pages: 10

Challenges Facing University Trained Structural Engineers in the Construction Industry in Kenya.

...CHALLENGES FACING UNIVERSITY TRAINED STRUCTURAL ENGINEERS IN THE CONSTRUCTION INDUSTRY IN KENYA. BY BETT BARNABAS EDU/PGT/09/07 A PROPOSAL SUBMITTED TO THE SCHOOL OF EDUCATION IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF PHILOSOPHY IN TECHNOLOGY EDUCATION (BUILDING AND CIVIL ENGINEERING OPTION) DEPARTMENT OF TECHNOLOGY EDUCATION SCHOOL OF EDUCATION UNIVERSITY OF ELDORET APRIL, 2014 DECLARATION DECLARATION BY THE CANDIDATE This proposal is my original work and has not been presented for any award in any other university. No part of this work may be submitted without my permission. NAME: BETT BARNABAS……………………………. REGN.NO:.…EDU/PGT/09/07……………………….. SIGNATURE:………………………. DECLARATION BY SUPERVISORS This proposal has been submitted for examination with our approval as university supervisors. NAME: Dr. KYALO……………………….. SIGNATURE:…………………. DATE:…………………………. NAME:…DR. DIMO……………………… SIGNATURE:…………………… DATE:……………………………. DEDICATION. It is my pleasure to dedicate this work to my family whose efforts have made me proud, with all the stresses through the course work and writing of this proposal they have been on my side. ABSTRACT The purpose of this study is to determine the challenges facing university trained structural......

Words: 11234 - Pages: 45

Hr Challenges Banking Industry

...IBA EMBA 20th Batch H501 – Managing Human Resource in Organization Assignment on "Challenges & Future of HRM" Submitted to: Professor Iqbal Ahmad, Director, IBA Submitted by: Mehrab Rehman ZR 1403007 Name of organization: Prime Bank Limited 1. Type of Organization: Public Limited Corporation 2. Objective of Organization: To be the best private commercial bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, profitability, liquidity and sound management. 3. Nature of Organization: Financial Institution – Banking Products and Services. 4. Total Number of Employees: 4469 a) Total Officers: 261 b) Total Workers: 4208 c) Total Permanent Employees, 2877 d) Total Temporary Employees: 1592 Current Challenges & Future Implications Employee Retention: The ability to attract and retain talent is a core HR capability that is critical to achieving sustainable business performance. Some of the strategies of retaining employees have been achieved by creating good employee satisfaction, internally as well as externally, by ensuring that people have good jobs which make them feel proud of working for the organization. However, there has been an increase in employee turnover in Prime Bank Limited due to mismanagement. Employees might be given opportunities (job involvement) to make them feel more connected with the organization. A major proportion of the turnover issue is attributed to the movement of manpower to the...

Words: 896 - Pages: 4

Banking Industry

...BUSINESS REPORT ON BANKING INDUSTRY SUBMITTED BY: M. WAJAHAT RAFFAT ID: 4616 SUBMITTED TO: FARHAN MEHBOOB ACKNOWLEDGEMENTS I am thankful to Almighty ALLAH first for the completion of this report. I would also like to thank Mr.Farhan Mehboob for his guidance and support that has made this report possible. LETTER OF TRANSMITTAL Mr.Farhan Mehboob Assistant Professor Iqra University Gulshan Campus, Karachi 5th January, 2011 Dear Mr.Farhan Mehboob: Sub: Letter of Transmittal Please accept this report entitled "Banking Industry" as authorized by you as final project for the course Information Technology in Business for the BBA program at Iqra University. I have contributed my best efforts for the completion of this report and hope that it will come up to the standards as preferred. Sincerely, M.Wajahat Raffat TABLE OF CONTENTS: S.NO | CONTENTS | PAGE | 1 | Introduction | 5 | 2 | Brief History | 6 | 3 | Role of information technology in banking | 7 | 4 | Advantages of technology in banking | 8 | 5 | Disadvantages of technology in banking | 10 | 6 | Technology products in banking sector | 11 | 7 | Individuals and companies depending on banks | 12 | 8 | Individuals and companies have nothing to do with banks | 12 | 9 | Marketing steps and promotion of banks | 13 | 10 | Ethical considerations | 15 | 11 | SWOT analysis | 17 | 12 | Future outlook | 19 | 13 | Size of the industry | 20 | 14 |......

Words: 7961 - Pages: 32

Banking Industry

...When Bangladesh came into existence on the 16th December, 1971, the banking sector of Bangladesh was in a total disarray. With the exception of two local banks incorporated in then East Pakistan, all the bigger local banks became in operational. Starting with such a humble  condition, the Banking Sector of Bangladesh has grown to a great extent. The banking industry in Bangladesh has flourished over the years, making double-digit profit percentages, sustaining growth and surviving cut-throat competition while providing attractive returns to shareholders. The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177. [pic] Janata Bank is a state-owned commercial bank of Bangladesh established in 1971. Its headquarter is situated at Motijheel in Dhaka, the capital city of Bangladesh. Immediately after the emergence of......

Words: 5684 - Pages: 23

Total Quality Management - What Are the Challenges Facing the Indian Hospitality Industry MRC. 5. Comment on the statement “TPM is not totally painted machines but taking pride in our machines. CASE 02: Customer Relationship Management at Bharti 1. Why did Bharti Tele-ventures opt for a CRM solution? 2. What were the challenges faced by Bharti in its CRM implementation process? 3. Discuss the strategy used by the company for implementing CRM and why. 4. Explain the various benefit received by Bharti after implementing CRM. CASE 03: Hotel Valuation Services ( HVS ) 1. What are the challenges facing the Indian hospitality industry? 2. What is HVS? What are the recommendations of HVS mentioned in this case study? 3. What are the limitations of the present hotel rating system in India? 4. If you are hired as the consultant, what measures do you suggest to improve the present hotel rating system in India? CASE 04: IMPLEMENTING QUALITY MANAGEMENT SYSTEM AT HYUNDAI MOTORS 1. Why did Hyundai decide to implement the QS 9000 system? 2. What is the difference between ISO 9000 and QS 9000? 3. Explain the QS 9000 system. 4. What were the benefits of QS 9000 implementation at Hyundai? CASE 05: Supplier Quality Audit at Tata Motors 1. What were the challenges faced by TATA Motors while selecting its suppliers for India? 2. What were the reasons for setting up a supplier quality team at TATA motors? 3. What was the approach followed by the supplier quality audit team? 4. What is the......

Words: 338 - Pages: 2