Effect Of Agency Banking On Financial Performance Of Banking Institutions Listed At The Nairobi Securities Exchange
Kanyore, Charles .M.
Ali, . Abdulkadir
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Agency banking roll-out in Kenya was meant to address the low financial inclusion in Kenya. As per the 2016 National financial access survey, 17.4% Kenyans bankable population is still totally out of the financial services sphere. The main objective of this study was to examine the effect of agency banking on performance of listed banking institutions in Kenya. The study used census survey of the 11 commercial banks which have listed in Nairobi Securities Exchange out of the population of 43 commercial banks in Kenya. Secondary data was used for the study. The study adopted a descriptive research design, correlation analysis and inferential statistics to make conclusions based on p values. The data analysis was done using Excel and Statistical Package for Social Sciences (SPSS) software version 20.Multiple linear regression models was used in measuring each variable in the model and the results used in order to establish relationship between the dependent and independent variables. Each variable was used in order to establish relationship between the dependent and independent variables. It was established that agency banking has positive effect on financial effect on financial performance of listed banks for the year 2010 to 2015. The ANOVA results for regression coefficient indicate that the significance of the F is 0.003 which is less than 0.05. This implies that there is a positive significant relationship between the effect of agency banking and performance of listed banking institutions in Kenya and that the model is a good fit for the data.