The Influence of Consular Strategy on Performance of Commercial Banks’ Diaspora Remittances in Kenya

Abstract

The study was conducted to examine the influence of consular strategy on performance of Commercial banks’ diaspora remittances in Kenya. The evolution of globalization, regionalization and deregulation experienced in the world of business has exposed the business entities to a lot of competitions both locally and internationally. Commercial banks in Kenya have not been spared of the stiff business competitive environment. The commercial banks have resulted into using competitive strategies such as consular strategy. Theory of risk returns was incorporated in the study since it widely supports the establishment of partnerships and the building of agency networks. Explanatory research design was used. Both primary and secondary data were collected. Primary data was collected using questionnaire while the secondary data was collected from relevant literature materials, the organization’s annual reports and website. The data collection instrument of the study was considered reliable since it attained the Cronbach’s alpha coefficient of 0.795. The study targeted 126 managers of the commercial banks based in their specific headquarters offices in Nairobi. The sampling procedure was done by use of Krejcie & Morgan sampling table giving a sample of 95 managers. The pilot study was based on 10% of the research population giving 13 respondents that were randomly selected. Descriptive statistics which comprised of mean and standard deviations were computed. Inferential statistics which included correlation and regression analysis were also computed. SPSS version 25 was used to aid in data analysis. The study results established R2 of 0.608. Data was presented using tables. The study concluded that consular strategy significantly influences performance of commercial banks’ diaspora remittances in Kenya. The study recommends that banks in Kenya should have more agency networks and partnerships with banks in the diaspora and other financial institutions use in order to enhance efficient transfer or sending of remittances from diaspora to home country. The study recommended that banks adopt consular strategy to enhance performance of Commercial banks’ diaspora remittances in Kenya.