THE INFLUENCE OF COMMERCIAL BANKS’ TECHNOLOGICAL INNOVATION LENDING STRATEGY ON THE GROWTH OF SMES IN KENYA

Abstract

Purpose: The purpose of the study was to establish the influence of commercial banks’ technological innovation lending strategy on the growth of MSEs in Kenya.Methodology: The researcher used purposive sampling to select respondents. The sample size was comprised of 352 respondents. The study used questionnaires to collect data from the field. Both quantitative and qualitative data gathered was coded and analyzed using Statistical Package for Social Sciences (SPSS) computer software. Descriptive statistics was used to analyze the data in frequency distributions and percentages which were presented in tables and figures. Inferential statistics were used to analyze qualitative data.Results: The study found out that commercial banks’ technology and innovation have a positive and significant effect on MSEs growth (r=0.505, p=0.023).Unique Contribution to Theory, Practice and Policy: The study also recommended that commercial banks need to adopt technological innovation strategies so as reach more MSEs in terms of credit and thus enhancing its  growth.