EFFICIENCY OF AGENCY BANKING IN TIME SAVING AT KENYA COMMERCIAL BANK AS A COMPETITIVE STRATEGY

Abstract

The introduction of agency banking in Kenya was meant to facilitate and enhance access to affordable financial
services especially to the poor, low-income households and micro and small enterprises, which largely comprise
those segments which are un-served and under-served by the financial sector. The objective of the study was to
determine the efficiency of agency banking in t.,.ime saving at Kenya Commercial Bank as a competitive
strategy. The theoretical framework was based on Silber’s Constraint Theory of Innovation. The research
design of the study was the descriptive survey design. A sample size of 236 respondents derived through the
Yaro Yamane formula was used. Stratified sampling method was used to get representative sample members
from each of the KCB branches. The study used structured questionnaires as the data collection instruments.
The research findings were analysed through SPSS and the results presented in tables. The descriptive statistics
that were used include the frequency distribution and chi-square. The study concluded that adoption of agency
banking as a competitive tool in KCB has led to increased geographical coverage by the bank and that the use
of agency banking as a competitive tool has led to improved customer service standard within the bank
branches. It recommends that the banking institutions intensify the agency banking network to ensure services
accessibility.