INNOVATIONS CAPABILITY ON THE PERFORMANCE OF COMMERCIAL BANKS IN KAKAMEGA COUNTY, KENYA

Abstract: The banking sector plays a crucial role in the economic development of regions and countries, Tand understanding the factors that drive their performance is essential. This study aimed to establish the effect of innovations capability on the performance of commercial banks in Kakamega County, Kenya. This study was guised by Absorptive Capacity Theory. The research employed descriptive research design which allowed the researcher to take a broad view and apply the results to a wider population. Data collection instrument was questionnaire. Branch managers, Credit managers and customer care was targeted. The study adopted census sampling technique where all 33 respondents was picked from each of the 11 banking institutions, hence the sample size was 33 respondents. Piloting of the research instruments was done on a sample of 3 (10% of 33) respondents who were employees in commercial banks in Busia County. Questionnaires was circulated through the drop process and then selected. Collected data was subjected to various analyses using Statistical Package for Social Sciences (SPSS Version 25.0) software. Analyzed data was presented in the form of tables. Based on the findings, the study concluded that According to the results, innovation capability has a significant effect on performance of commercial banks in Kakamega, County. β1=0.803, p value= 0.000). The relationship was considered significant since the p value 0.004 was less than the significant level of 0.05. The study came up with the following recommendations; the management of commercial banks should invest in culture that encourages continuous product/service innovations and creativity for the survival of the banks ensuring banks stay ahead of competitors in delivering unique value adding services. Title: INNOVATIONS CAPABILITY ON THE PERFORMANCE OF COMMERCIAL BANKS IN KAKAMEGA COUNTY, KENYA Author: Mark Werunga, Dr. Elizabeth Nambuswa Makokha International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 12, Issue 4, October 2025 - December 2025 Page No: 54-61 Paper Publications Website: www.paperpublications.org Published Date: 18-October-2025 DOI: https://doi.org/10.5281/zenodo.17387210 Paper Download Link (Source) https://www.paperpublications.org/upload/book/INNOVATIONS%20CAPABILITY%20ON%20THE%20PERFORMANCE%20OF%20COMMERCIAL%20BANKS%20IN%20KAKAMEGA-18102025-5.pdf