FACTORS INFLUENCING THE DEVELOPMENT OF ISLAMIC BANKING IN KENYA: A CASE OF NATIONAL BANK OF KENYA
Abstract
The purpose of this study was to establish the factors influencing the development of Islamic banking in Kenya: A case of National Bank of Kenya. Specifically, the study established the influence of customer service management, competition, legal framework and technology adoption on the development of Islamic banking. The research applied descriptive survey research design. The target population was made up of top level management, middle-level management and lower level management. Census sampling was used to involve all the top level management, middle-level management and lower level management. Both primary and secondary data was collected using questionnaires. Reliability analysis was done through test-retest method. Data collected was analyzed using SPSS (Statistical Package for Social Sciences) version 23. Descriptive statistics and inferential analysis was used for analysis and data was presented using tables. A good response rate was witnessed. From the findings; there was a strong positive relationship between the study variables.The findings revealed that healthy competition had led to development of Islamic banking, government policies and changes in the legal framework was key in development of Islamic banking and customer service management and technology adoption had led to efficieny and development of Islamic banking. The study recommended that the management should invest in research and development and develop new strategies that are competitive in the target market. Islamic banks should also try to improve further the legal review framework systems in their organization to improve performance and service delivery. The findings showed that a large part of the factors influencing the development of Islamic banking were explained by the four variables and the remaining could be accounted for by the standard error.
Key Words: Customer Service Management, Competition, Legal Framework, Technology, Islamic Banking
CITATION: Njagi, D. W., & Gekara, M. (2019). Factors influencing the development of Islamic banking in Kenya: A case of national bank of Kenya. The Strategic Journal of Business & Change Management, 6 (4), 361 – 376.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1395
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