INFLUENCE OF LIQUIDITY DISTRESS FACTOR ON PERFORMANCE OF COMMERCIAL BANKS IN KENYA

The Central Bank of Kenya advised commercial banks to take precautions for the growth banking industry. In Imperial and Chase were placed under liquidation due liquidity problems. CBK established performance Banks whereby 8 obtained a negative ROA as result poor investments. main objective this research was establish influence on Kenyan Commercial . This study guided by Liquidity Preference theory. used cross sectional but descriptive survey design 39 incorporated census survey. Secondary data results retrieved from annual financial statement reports Banks. would help both managers government it seeks develop sector enhance growth. Panel hypothesis test at significance level 0.05. Descriptive analysis included; skweness, kurtosis jarque bera while inferential involved correlation analysis. ensured that assumptions linear regression based normality linearity tested. presented in form tables models. distress factor significantly influenced banks. Pearson show moderate significant association between since p = 0.0000 (p<0.05). Fixed effect simple indicated Liquid assets total 0.000 (p<0.05) had positive liquid deposit 0.010 It recommended stakeholders should source enough asset bases increase their position. also encourage customers maintain deposits better Key words; banks, Distress Factor, Performance CITATION: Chibole, K. W., Maniagi, M. G., & Nelima, L. (2022). Influence Kenya. Strategic Journal Business Change Management, 9 (4), 618 – 632.