An analysis of commercial banks’ responses to climate change: a case of commercial banks in Kitui County Kenya

Abstract

Warming of the climate system is unequivocal, and since the 1950s, many of the observed climate changes are unprecedented over decades to millennia. The main objective of this study was to assess the impact of climate change on banking performance in Kenya. The specific objectives were to assess the impact of climate change strategy, corporate governance, climate change disclosure, and climate change policy against the banking performance in Kenya. The total target population was all the commercial banks in operating Kitui town with 250 employees which according to Kenya central bank annual supervision report, the town has a total of 10 bank branches 2019. Descriptive survey design and correlational research design were used in this study. Primary and secondary data were used. While self-administered questionnaire and interview guide were used to collect primary data, the study reviews the previous evaluation reports to seek the secondary data on performance. The data collected was then analyzed by both descriptive and inferential statistical tools. Being that the current study was dealing with the relationship study, the study therefore used regression model as a tool of analysis and the results generated were presented in form of tables. The results of this study is to benefit policy makers, managers, administrators, entrepreneurs, researchers, consultants, scholars and trainers involved in strategic entrepreneurship development. This study tested the null hypotheses that climate change strategy, corporate governance, climate change disclosure, and climate change policy have no significant impact against the banking performance in Kenya. Pragmatism paradigm approach and mixed method research was adopted in this study. The questionnaire was tested for validity and reliability. Quantitative and qualitative techniques were used to analyze the collected data with the assistance of Statistical Package for Social Sciences (SPSS) software. Multiple regression and correlation analysis were carried out. The study found out that banking performance in Kenya was impacted positively by the change strategy, corporate governance, climate change disclosure, and climate change policy.