The Role of Growth Strategies in Enhancing the Performance of Commercial Banks in Busia County, Kenya

Commercial Banks in Kenya play a bigger role in the growth of our nation. Dynamic changes by the regulator, combined with stiff rivalry, have caused several banking institutions in Kenya to experience declining performance. Commercial banks have faced performance challenges as evidenced by the decline in gross profit, liquidity ratios, and asset quality. This research sought to find out how growth strategies influenced commercial banks' performance in Busia County, Kenya. The theory of performance, Ansoff matrix theory, and strategic choice theory anchored the study. Data was collected with the use of structured questionnaires. Data was analyzed using descriptive and inferential statistics and presented using tables, graphs, and charts, with research findings revealing that 76.2% of the performance of commercial banks was influenced by the growth strategies. Performance was measured through gross profits, liquidity ratios, asset quality, and customer satisfaction. Additionally, it was found that Diversification had the biggest impact on firm performance, followed by product development, market penetration, and market development. The conclusion drawn showed that the performance of commercial banks was positively and significantly influenced by the growth strategies. It was recommended that commercial banks should practice growth strategies for better performance. Commercial banks should seek strategic partnerships that would lift the profile of their banks. The government should create infrastructure that supports market penetration. Policymakers to create policies towards the protection of intellectual property rights to prevent unhealthy competition. For further research, it was recommended that scientists investigate the effect of growth strategies on other financial institutions, like insurance firms and mortgage providers.