Importance of Effective Corporate Communication in the Kenyan Banking Sector

Abstract

Effective communication in the banking sector is crucial since it helps in building trust, adapting to changes, improving customer experience, compliance, and transparency. The aim of the study was to determine the importance of effective corporate communication in the Kenyan Banking sector. In Kenya, the banking industry continues to be more competitive due to the advancements in communication and information technology. To achieve the aim of the study, bank managers were interviewed on effective corporate communication. The context of the study was Nairobi County to ensure optimal utilization of resources and time. The study population was 1000 bank managers and a sample size 30% was determined (300). The results indicated that the majority of bank managers perceived that effective corporate communication improves performance. Further, it was found that the majority of bank managers value effective corporate communication as a corporate change strategy. Majority of the respondents perceived that effective corporate communication improves meeting stakeholders' needs, sustainability, and expands opportunities for banks. The findings contribute to revolutionizing policy and practice within the banking sector by providing insights on new theories of corporate identity, corporate reputation, and corporate image. These theories contribute to competitive advantage, strategy formulation, and political economy. In this context, the study emphasizes on the interaction of the banking business and the other environmental factors, such as the competitors, government, and the public.