Browsing by Author "VELMA MWENDE DAVID"

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    CHANGE MANAGEMENT STRATEGIES AND PERFORMANCE OF COMMERCIAL BANKS IN KENYA
    (THE CATHOLIC UNIVERSITY OF EASTERN AFRICA, 2025-09) VELMA MWENDE DAVID
    The performance of commercial banks in Kenya between 2020 and 2025 has been unstable, with fluctuating returns on investment, declining market share, low levels of client satisfaction, and rising credit risk. These challenges have raised concerns about whether structured change management strategies can enhance stability and performance in the banking sector. The objective of this study was to evaluate the effect of structured change management strategies on the performance of commercial banks in Kenya. Specifically, the study examined the effects of environmental assessment, employee engagement, learning culture, and monitoring and control on bank performance. The study was guided by Kotter’s 8-Step Change Model and supported by the Contingency Theory, Organizational Learning Theory, Resource-Based View (RBV), and Control Theory. A descriptive cross-sectional research design was adopted, targeting all 38 licensed commercial banks in Kenya. Data were collected through structured questionnaires administered to Heads of Operations and Strategy Managers. Reliability of the research instrument was confirmed with Cronbach’s Alpha coefficients above 0.7. Data were analysed using SPSS version 28, with diagnostic tests confirming normality, absence of multicollinearity (VIF < 2), and homoscedasticity. The regression analysis revealed that the four change management strategies explained 83.7% of the variance in bank performance (R² = 0.837; Adjusted R² = 0.828). Monitoring and control emerged as the strongest and statistically significant predictor (B = 0.335, p = 0.008). Environmental assessment had a positive but statistically insignificant effect (B = 0.263, p = 0.082), while employee engagement (B = -0.047, p = 0.789) and learning culture (B = -0.087, p = 0.685) showed negative and insignificant effects. The findings indicate that the performance of commercial banks in Kenya, particularly in terms of operational efficiency, competitiveness, and customer satisfaction, can be significantly improved by employing structured change management strategies, with monitoring and control playing the most critical role. The study contributes empirical evidence to policymakers, bank managers, and change managers on the importance of structured change approaches in navigating financial sector uncertainties. Ethical standards, including informed consent, voluntary participation, and confidentiality, were observed throughout the research process.