Banking sector competition and intermediation efficiency in Kenya

This paper seeks to evaluate efficiency and competition dynamics of the banking sector in Kenya for period 2001–2017 using bank-level data 37 commercial banks. We apply non-parametric envelopment analysis analyze measures various aspects sector. also adopt Panzar–Rosse, H-statistics assess level To examine effect on competition, panel estimators are applied. The study findings indicate that was an upward trend averaged 69%. is characterized by monopolistic as shown H-statistic .59. Managerial ability measured score found be important factor promoting Kenyan shows there room banks improve their optimizing scale operations continuing technology. recommends policy makers continue adopting policies promote greater competition.