Effects of Income Diversification and Financial Performance of Kenyan Commercial Banks.

This paper aims at examining the impact of income diversification on financial performance. The motivating factor is an occasion by raising pursuance interest activities and fluctuations profitability among banks due to declining stiff competition. Design/methodology/approach – study uses a sample 31 Kenyan data for period 2008-2019. Data analyzed through fixed-effect regression analysis. Findings finds that improves bank profitability. findings are attributable increase in non-interest possible risk diversification. Moreover, controls several banking sector-specific factors affect results show size, age, loan portfolio quality, lending strategy, market share have significant effect. Research implications Based results, recommends managers should consider engaging non-traditional generate compensate deteriorating boost In addition, regulators relax rules limit extent which can engage earning