Firm-Specific Factors and Performance of Commercial Banks in Kenya

The purpose of this research was to determine the effect credit risk and income diversification on commercial bank performance in Kenya. Impaired loans total were used measure risk. Net interest net non-interest diversification. study's population consisted thirty-nine Kenyan banks. study, which spanned eight years from 2013 2020, relied secondary data audited annual financial statements. collected analyzed using descriptive statistics multiple regression analysis. Based findings, has a significant impact performance. An increase tends lower bank's terms profitability. study further examined According results, had analysis concludes that banks monetary authorities should devise strategies ensure asset quality is appropriately maintained non-performing are regulated kept minimum improve their Further, given over-diversification can affect by increasing volatility returns default risk, there be balance between revenue as source income.