Effect of Corporate Culture on the Performance of the Kenya Commercial Bank




Adaptability Culture, Consistency Culture, Corporate Culture, Involvement Culture, Mission Culture Performance


Over the last seven years, Kenya Commercial Bank (KCB) management has initiated various restructuring processes, such as "moving from good to great" positioning strategy, rebranding tactics, value concerns, and behavior reassessment. These restructuring strategies are meant to place the financial institution as the market leader in the banking industry, not only in Kenya but also to encourage it to become a pan-African bank. Indeed, the bank has demonstrated strength in its branch network, accounting for 359 branches, an asset base of 1.1 trillion Kenya shillings (Ksh) as of 2021 financial results, and a significant market share command of 22.5 million customers. However, the human effort applied in explaining the milestone achievements cannot go unnoticed, especially the corporate culture of the bank employees, which is operationalized through involvement culture, consistency, adoptability, and mission cultures. Therefore, the objective of this paper was to interrogate the implication of corporate culture on the performance of Kenya Commercial Bank. The paper employed a qualitative and quantitative research design. Qualitative data was analyzed by using descriptive statistics such as total scores, percentages, and frequencies. Quantitative data was analyzed using Pearson correlation and regression analysis. Primary data was collected using a structured questionnaire and interview guide targeting senior management and worker representatives. The data was analyzed using Pearson correlation and regression analysis. The finding was that corporate culture had a positive and significant effect on Kenyan commercial bank performance. This was evidenced by positive and significant correlations between performance and all corporate culture sub-variables, as follows: involvement culture (r = 0.584, p<0.01), consistency culture (r = 0.541, p<0.01), adaptability culture (r = 0.566, p<0.01), mission culture (r = 0.576, p<0.01), and organization factors (r = 0.517, p<0.05). These findings shed light on the interconnectedness of these variables and how they collectively contribute to an organization's success and effectiveness. Based on the findings, the paper recommends that there should be relevant activities undertaken by the bank to promote corporate culture because they have a positive influence on the performance of the bank and that organizations should consistently apply the various aspects of corporate culture at the strategic, functional, and operational levels.


Ambrose, M. L., & Cropanzano, R. S. (2010). The effect of organizational structure on perceptions of procedural fairness. Journal of Applied Psychology, 85, 294-304. https://doi.org/10.1037/0021-9010.85.2.294 DOI: https://doi.org/10.1037/0021-9010.85.2.294

Bart, C., Bontis, N., & Taggar, S. (2001). A Model of the Impact of Mission Statements on Firm Performance. Management Decision, 39, 19-35. https://doi.org/10.1108/EUM0000000005404 DOI: https://doi.org/10.1108/EUM0000000005404

Central Bank of Kenya. (2021). Bank Supervision Annual Report 2021. Retrieved from https://www.centralbank.go.ke/uploads/20091

Choi, Y., Yoon, D. J., & Kim, D. (2020). Leader Behavioral Integrity and Employee In-Role Performance: The Roles of Coworker Support and Job Autonomy. International journal of environmental research and public health, 17(12), 4303. https://doi.org/10.3390/ijerph17124303 DOI: https://doi.org/10.3390/ijerph17124303

Deal, T. E., & Peterson, K. D. (2006). Shaping school culture. John Wiley & Sons.

Denison, D. R., Spreitzer, G.M. (1991). Organizational culture and organizational development: a competing values approach. Research in Organizational Change and Development, 5, 1-21.

Detert, J. et al. (2000). A Framework for linking culture and improvement initiatives in organizations. Academy of Management Review, 25(4), 850-863. https://doi.org/10.5465/amr.2000.3707740 DOI: https://doi.org/10.5465/amr.2000.3707740

Ghumiem, S., Alawi, N., Al-refaei, A. A., & Masaud, K. (2023). Corporate Culture and Its Effects on Organizational Performance: Multi-Group Analysis Evidence from Developing Countries. European Journal of Business and Management Research, 8, 142-148. https://doi.org/10.24018/ejbmr.2023.8.2.1890 DOI: https://doi.org/10.24018/ejbmr.2023.8.2.1890

Inegbedion, H., Eze, S., Asaleye, A., adedoyin isola, L., & Ayeni, A. (2020). Managing Diversity for Organizational Efficiency. SAGE Open, 10(1), 142-148. https://doi.org/10.1177/2158244019900173 DOI: https://doi.org/10.1177/2158244019900173

Joseph, O. O., & Kibera, F. (2019). Organizational Culture and Performance: Evidence from Microfinance Institutions in Kenya. SAGE Open, 9(1). https://doi.org/10.1177/2158244019835934 DOI: https://doi.org/10.1177/2158244019835934

Kandula, S. R. (2016). Performance Management. Prentice Hall of India Private Limited.

KCB. (2022). Integrated Report & Financial Statements 2022. Retrieved from https://kcbgroup.com/investor-relations/

Kirimi, P. N., Kariuki, S. N., & Ocharo, K. N. (2022). Ownership structure and financial performance: Evidence from Kenyan commercial banks. PloS one, 17(5), e0268301. https://doi.org/10.1371/journal.pone.0268301 DOI: https://doi.org/10.1371/journal.pone.0268301

Kotter, J. P., & Heskett, J. L. (1992). Corporate Culture and Performance. Free Press.

Kweyu, S. C. (2010). Influence of Corporate Culture on the Performance of Kenya Airways (Unpublished master's thesis). University of Nairobi.

Lewandowska, A., Ullah, Z., AlDhaen, F., Aldhaen, E., & Yakymchuk, A. (2023). Enhancing Organizational Social Sustainability: Exploring the Effect of Sustainable Leadership and the Moderating Role of Micro-Level CSR. Sustainability, 15, 1-16. https://doi.org/10.3390/su151511853 DOI: https://doi.org/10.3390/su151511853

Liker, J., & Hoseus, M. (2008). Toyota Culture: The Heart and Soul of the Toyota Way. McGraw Hill.

Maina, J. (2016). Influence of Organizational Culture on Performance of Commercial Banks in Kenya (Master's thesis). University of Nairobi.

Ng, H. S., & Kee, D. (2013). Organisational Culture can be a Double-edged Sword for Firm Performance. Research Journal of Business Management, 7, 41-52. https://doi.org/10.3923/rjbm.2013.41.52 DOI: https://doi.org/10.3923/rjbm.2013.41.52

Nneji, N. & Asikhia, O. (2021). Organizational Culture and Organizational Performance: A Review of Literature. International Journal of Advances in Engineering and Management (IJAEM), 3(1), 361-372. 10.35629/5252-0301361372.

Odor, H. (2018). Organisational Culture and Dynamics. International Journal of Scientific Research and Management, 6. https://doi.org/10.18535/ijsrm/v6i1.em05 DOI: https://doi.org/10.18535/ijsrm/v6i1.em05

Ogbonna, E., & Harris, L. (2000). Leadership Style, Organizational Culture and Performance: Empirical Evidence from U.K. Companies. International Journal of Human Resource Management, 11. https://doi.org/10.1080/09585190050075114 DOI: https://doi.org/10.1080/09585190050075114

Omukaga, A. (2016). Effects of Organizational Culture on Employee Performance at AON Limited, Nairobi, Kenya (Master's thesis, University of Nairobi).

Qazi, S., & Kaur, T. (2017). Impact of Organizational Culture on Job Satisfaction among the University Faculty Members - An Empirical Study. International Journal of Business and Social Science, 8(3), 171.

Raduan, C. R., Kumar, N., Haslinda, A., & Ling, G. Y. (2008). Organizational culture as a root of performance improvement: Research and Recommendations. Contemporary Management Research, 4(1), 43-56. https://doi.org/10.7903/cmr.450 DOI: https://doi.org/10.7903/cmr.450

Schein, E. H. (2009). How to Offer, Give, and Receive Help: Understanding Effective Dynamics in One-to-One, Group, and Organizational Relationships. Berrett-Koehler Publishers, Inc.

Schein, E. H. (2017). Organizational culture and leadership (5th Ed.). John Wiley & Sons.

Schein, E.H. (2004). Organizational Culture and Leadership (3rd Ed.). Jossey-Bass.

Sofijanova, E., & Zabijakin-Chatleska, T. (2013). Employee Involvement and Organizational Performance: Evidence from the Manufacturing Sector in Republic Of Macedonia. Journal of Sciences, 11, 31-36.

Tapera, J. (2014). The Importance of Strategic Management to Business Organizations. Research Journal of Business Management, 3, 122-131.

Umrani, W., Shah, S. M., Memon, P., & Hussain, A. (2017). Organizational Culture and Business Performance: An Empirical Investigation in the Pakistani Context. International Journal of Academic Research in Economics and Management Sciences, 6, 93-107. https://doi.org/10.6007/IJAREMS/v6-i1/2575 DOI: https://doi.org/10.6007/IJAREMS/v6-i1/2575

Upadhyaya, R., & Johnson, S. (2015). Evolution of Kenya's Banking Sector 2000 - 2012. In A. Heyer & M. King (Eds.), The Kenyan Financial Transformation (pp. 15-61). FSD Kenya.

Worley, C., & Lawler, E. (2010). Built to Change Organizations and Responsible Progress: Twin Pillars of Sustainable Success. In A. Heyer & M. King (Eds.), the Kenyan Financial Transformation (pp. 1-49). FSD Kenya. https://doi.org/10.1108/S0897-3016(2010)0000018005 DOI: https://doi.org/10.1108/S0897-3016(2010)0000018005

Yilmaz, C., & Ergun, E. (2018). Organizational culture and firm effectiveness: An examination of relative effects of culture traits and the balanced culture hypothesis in an emerging economy. Journal of World Business, 43, 290-306. DOI: https://doi.org/10.1016/j.jwb.2008.03.019




How to Cite

Mbirira, S. B., Oseno, B., & Wanjere, D. (2023). Effect of Corporate Culture on the Performance of the Kenya Commercial Bank . African Journal of Empirical Research, 4(2), 88–109. https://doi.org/10.51867/ajernet.4.2.34