Effect Of Agency Banking On Financial Performance Of Banking Institutions Listed At The Nairobi Securities Exchange

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Date
2017Author
Kanyore, Charles .M.
Ali, . Abdulkadir
Kingi, William
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Show full item recordAbstract
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.