Determinants of Customer Satisfaction in the Kenyan Banking Industry

Abstract

Banks depend on sufficient and sustaining profitability to survive in the global business world. Customers are the main source of banks’ profitability. Studies have established a link between satisfaction and variables such as profitability, retention, and share of wallet. This study intends to examine the antecedents of customer satisfaction from the banking customer’s perspective. In order to achieve this aim, structured questionnaires were issued to 2000 customers spread across the 43 banks in Kenya. The findings from the study established a positive relationship between bank-related factors and customer satisfaction in Kenyan banks. .Recommendations based on the findings were made to the Kenyan banks which if implemented will enhance the satisfaction of the bank customers as well as improve customer retention rates. The conclusion from this study is that Customer satisfaction can lead to higher rates of retention of the Kenyan bank customers.

Key words: Customer Satisfaction,  banking, Kenya