Exploring Porter's Generic Strategies on Performance of Commercial Banks in Kenya

The Kenyan banking industry contributes significant lyto the government revenues yet financial reports indicate that Kenya’s listed banks recorded a negative EPS (earnings per share) indicating a decline in growth of the core earnings pershare. The study looked at the effects of Poter’s generic strategies on performance of commercial banks in Kenya. The study focused on the 11 listed commercial banks in Kenya with one being used for pilot. The respondents comprised of 68 heads of departments, 11CEOs,29
regional heads, and 145 regional managers. The findings revealed that porter’s generic strategies have an effect on performance of commercial banks(β=.645, p=.000) and accounted for 41.6% variance. It is concluded from the findings that porter’s generic strategies has a positive effect on performance of commercial banks. It is recommended from the findings that companies improve more on the cost strategy to realize better performance.