EFFECTS OF LIQUIDITY MANAGEMENT GUIDELINES ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA.

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DENNIS MWITI KIRIMI
MOSES KITHINJI
JAMES GATAUWA, PhD

Abstract

The purpose of the study was to investigate the effect of liquidity management guidelines on financial performance of commercial banks in Kenya. This study used descriptive survey research design. The researcher targeted all 42 commercial banks in and purposively selected three senior management staff from every bank to arrive at a sample size of 130 respondents that participated in the study. The study collected both primary and secondary data. Structured questionnaires were used to collect primary data. Data collected was quantitative in nature and it was analyzed by factor analysis and descriptive analysis. The descriptive statistical tools such as SPSS version 26 was used to describe the data and determine the extent to which the growth strategies are used and the level of growth achieved. The findings were presented using tables and charts. The findings indicated that central banks prudential guidelines on liquidity management affects the overall banks performance on total deposits.

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Author Biographies

DENNIS MWITI KIRIMI, Kenya Methodist University [KEMU], Kenya

Msc. Candidate, School of Business and Economics

MOSES KITHINJI, Kenya Methodist University [KEMU], Kenya

Lecturer, Department of Economics, Finance & Accounting, School of Business and Economics

JAMES GATAUWA, PhD, Kenyatta University, Kenya

Lecturer

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