Influence of comercial bank’s policy on savings mobilization in kenya: case of selected commercial banks in narok

Abstract

Savings in Kenya has constantly fluctuated in the recent years. Raising the levels of net savings is therefore absolutely necessary if Kenya is to achieve the targets of long-term growth and vision 2030. The main objective of this study is to assess the influence of bank policy on savings mobilization by commercial banks in Kenya. Descriptive statistics used include frequency tabulations; mean and percentages which were used to analyze the data. Qualitative analysis was used in analyzing the data that was gathered from the interviews. The researcher tried to find out the main factors influencing savings in the sampled banks which include cheque clearing policy, credit policy, investment policy, establishment policy, poor identification of customer needs, negative staff attitude and poor responsiveness, low employment opportunities, inadequate bank policy, limited diversity of deposit products, low disposable income and inadequate marketing and bank relationship. A well-functioning financial sector contributes to economic growth and to social cohesion. Savings are the principal sources of domestic capital accumulation, which in turn, when combined with health economic and investment policies allow a country to ensure sustained growth and improvements in the standards of living.